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The Philippines introduce new regulation on virtual currencies

Categories : Cash generates security
February 21, 2017
Tags : Asia, Regulation, Regulators, Virtual currencies
The Philippines have decided to regulate the exchange of virtual currencies as a means to fight money laundering and maintain financial stability. The new measure will come into force on February 21.
Communication Team / Equipo de Comunicación

The Central Bank of the Philippines (BSP) recently published new guidelines regulating virtual currency exchanges. The regulation, to be enforced starting February 21, aims to fight against money laundering activities and maintain financial stability by targeting virtual currency exchangers.

To conduct business in the Philippines, exchange institutions will have to register at the Anti-Money Laundering Council secretariat and apply for a “certificate of registration” with the BSP. They will now be required to submit quarterly and annual reports to the central bank and pay annual fees. In addition, virtual currency exchangers will have to effectively manage risks with adequate internal control systems and periodic backups. In the future, cyber-security frameworks will be defined for companies operating with e-wallet services.

The BSP declared that it does not promote the use of virtual currencies as they are not issued or granted by the central bank. However, the bank is aware of the necessity to regulate such currencies. In this framework, it also imposed a limit of 500,000 pesos (about $ 10,000) per transaction.

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