New Virtual Currency Policies Coming to the Philippines
Philippine Central Bank Deputy Governor Nestor A. Espenilla
Bitcoin.com reported last June that the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), was preparing new guidelines towards Bitcoin businesses in the area. Now the BSP deputy governor, Nestor Espenilla, has published a circular (BSP Circular ???944) that defines the government’s position concerning Bitcoin operations. In the record, the BSP says that it intends to regulate virtual monies that apply to remittance platforms and all payment systems. Basically, it applies to any operation that may have”material effect on anti-money laundering (AML) and combating the financing of terrorism (CFT), consumer protection and financial stability,” explains the BSP.
The central bank will begin implementing the rules and regulations that govern operations of virtual currency exchanges in a couple of weeks and bitcoin casino binary choices . The BSP circular notes that the guidelines aren’t endorsements of bitcoin and other currenciescasino review bitcoin game gambling bitcoin casino reviews The Bank does recognize that virtual currency options have potential. The governor’s circular states:
Bangko Sentral admits that Virtual Currency (VC) systems have the potential to revolutionize delivery of financial services, especially for payments and remittance, in view of the ability to provide quicker and cheaper transfer of capital, both domestic and global, and may further encourage financial inclusion.
Bitcoin Remittance Expert Weighs In
Bitcoin remittance expert Luis Buenaventura
Following the recent BSP circular announcement, Bitcoin remittance expert Luis Buenaventura revealed his opinion of policies and the central bank’s definitions. Buenaventura has done extensive research on Bitcoin’s relationship with remittances by studying strategies and startups in the crypto-remittance space like Bitspark and Abra. In his view, the guidelines in the Philippines define all virtual money exchanges to be treated as remittance companies.
“It certainly appears like the intention is to take care of any business dealing with Bitcoin as a remittance agent, even though remittances aren’t the primary goal of the firm,” explains Buenaventura.
The new guidelines don’t offer any concessions for order-book exchanges which don’t have any worldwide footprint, nor do they clarify the situation for sole proprietors buying and selling BTC on Localbitcoins. I expect that it won’t put the brakes on the momentum that has been building up over the past few years, although I’m unsure what kind of effect this will have on the Bitcoin startups operating within our borders.
The Central Bank is Learning About Bitcoin, But Definitions Are Too Broad
The Bitcoin industry within the Philippines will have to wait and see how these policies take effect in the countryonehash app Buenaventura says bitcoin exchanges and remittance startups have made a lot of progress but still have a ways to go. Furthermore, he is encouraged that the BSP spent a lot of time learning about Bitcoin, however, the central bank has”vastly overestimated how much of it is actually used for remittances.”
“From one angle, it’s very good news that the government is finally recognizing that we exist and admit that our efforts do have a positive social effect on our country,” Buenaventura adds.
What do you consider the Philippine central bank regulating Bitcoin? Tell us in the comments below!
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