The Central Bank of the Philippines Plans to Move in and Regulate Bitcoin
The latest country to go stricter on BTC?
The central bank of the Philippines – Bankgo Central ng Pilipinas (BSP) – appears to be keeping close tabs on the progress of Bitcoin as it plans to regulate the cryptocurrency among other digital assets in the country.
According to the Deputy Governor, Chichi Fonacier, the bank will impose some new regulations targeting cryptocurrencies. This will be possible by partnering with businesses that deal with digital currencies as well as exchanges in the country. Additionally, the bank will work with the Security and Exchange Commission to see that their plans materialize.
More Cryptocurrency Exchanges Waiting for Approval by the Central Bank
In 2017, the central bank of the Philippines gave a license to two cryptocurrency exchanges, despite plans to regulate the industry already being underway. Currently, it has a dozen of other pending applications by Bitcoin exchanges looking to secure a license to operate in the country.
Although the central bank of the Philippines hasn’t released any official information on Bitcoin, either certifying or denying usage, the Core IT Specialist of BSP, Melchor Plasbsan, has said that they don’t endorse BTC being used as a currency:
We do not endorse virtual currency as a currency because it is not a currency,
According to the central bank of the Philippines, there are people taking advantage of the industry of digital currency, using it for illegal activity such as money laundering and terrorist funding.
Keeping an Open Mind
The move to regulate Bitcoin and work with exchanges means that the central bank of the Philippines is open-minded, as most people see it as a logical step. However, considering that the digital currencies are decentralized, the only part that the authorities can regulate is exchanges and businesses whose models revolve around digital currencies. Plasban noted,
We only regulate Bitcoin or virtual currencies when they are used in delivering financial services like remittance and payments
He is thereby further acknowledging that the country or BSP cannot regulate anything else when it comes to digital currencies.
Plabasan also warned about the many pyramid schemes in the market, especially those using Initial Coin Offerings in an attempt to defraud unsuspecting investors.
What do you think about the move to regulate Bitcoin and other digital assets by the Philippines central bank? Will this negatively or positively affect the growth of the digital currency, especially in this country? Let’s hear your thoughts today.