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Central Bank of the Philippines introduces mandatory licensing of cryptocurrency companies

Central Bank of the Philippines introduces mandatory licensing of cryptocurrency companies

The Central Bank of the Philippines Bangko Sentral ng Pilipinas (BSP) has announced the introduction of mandatory licensing of companies providing services for working with cryptocurrencies.

According to the local newspaper Philippine Daily Inquirer, any companies working with digital assets will have to obtain a license. We are talking about exchanges and custodial services that work exclusively with digital assets, as well as cryptocurrency derivatives platforms.

To obtain a license, companies will have to prove their compliance with the requirements of the anti-money laundering and anti-terrorist financing regulator. Accordingly, for transactions exceeding a certain volume, the participants of the transaction will have to pass identification.

As the BSP’s managing director, Benjamin Diokno, emphasized, expanding the regulation of cryptocurrency platforms is necessary to keep up with the development of the industry over the past three years. At the same time, cryptocurrency platforms that also work with fiat currencies began to receive licenses since 2017.

Diokno hopes that the new rules will eliminate existing regulatory loopholes in the cryptocurrency financial services ecosystem. He added that the Central Bank of the Philippines seeks to find a balance between supporting financial innovation and fulfilling its supervisory functions.

Last September, it was reported that BSP was considering issuing its own digital currency.