Philippine Central considering setting up a Regulation Framework for to Government Bitcoin Activities in the Country
Dec 21, 2017 Posted / 3424 Views
The Central Bank and virtual currency regulator in the Philippine are stepping up to regulated bitcoin according to a report from a major commercial broadcast television and radio network in the Philippines GMA network. The Bank’s deputy governor miss. Chuchi Fonacier revealed that the bank has been cooperating with the Securities and Exchange Commission to develop regulations for Initial Offerings and Cryptocurrency Licensing Procedures. At the moment Bitcoin is in the spotlight of being regulated through a comprehensive regulatory framework developed by the bank and its partnering institutions.
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The Central Bank has so far awarded operation license to two cryptocurrency exchanges in the country which are Betur mostly known as coins.ph and Rebittance. Five more exchanges are exchanges have applied to be licensed by the Bank although they have not yet successfully been approved to operate in the country.
Deputy Governor Fonacier revealed that the bank is teaming up with the corporate regulator Securities and Exchange Commission (SEC) because Bitcoin could be used as an investment asset in the Philippines. She told GMA news that,
“We are coordinating with SEC because Bitcoin usage can shift to Investment as it happens already elsewhere. Collaborating with SEC will allow BSP to have enough capacitor to regulate this aspect of Bitcoin”
The which was earlier concentrated on exchanges only is now certain that Bitcoin also requires regulations.
The Central Bank has realized that millions of dollars’ worth of Bitcoin are being converted into the countries local currency on a daily basis. Currently, the Bank is reviewing licensure application from about 17 businesses who intend to set up Bitcoin Exchanges in the country with at least two exchanges cleared to operate.
The Central Bank Governor, Nestor Espenilla in November Revealed that there was a need to regulate ICOs and Legalize Bitcoin as a security in the country. The governor Continued saying the Central bank has an open-minded approach towards Fintech. Implying that it would take a very active role in ensuring the right policies that provide innovation opportunities for the financial sector were enacted.
According to the latest drafted regulatory guidelines, the bank will only regulate business entities that exchange cryptocurrencies to American Dollars or any other alternative Fiat Currencies.
In the Meantime, Bitcoin still does not have any legal status in the Philippines until the BSP regulation is activated. Latest data show that the volume Of Bitcoin Transaction in the Philippines is in the ups if $8.8 million monthly from data recorded between January and June this year.
BSP defined Virtual Currencies as any type of digital unit that is used as a medium of exchange or a digital storage of value created by a consensus within the community using the virtual currency. The bank warned that Virtual currencies are not issued or guaranteed by any jurisdiction and do not have a legal tender status in the country.
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