According to reports, Chuchi G. Fonacier, vice president of BSP, revealed that Virtual Currency Philippines, Inc. and ETranss have been certified as trading platforms that can convert the Philippine peso into virtual currency. Through this initiative, the two exchanges have teamed up with rebitda, Inc., Betur, Inc. and BloomSolutions.
The Philippine Central Bank has recognized that digital currencies can provide faster, lower-cost transactions, but remains cautious about the high volatility of cryptocurrencies, the potential risks of cybersecurity and cybersecurity.
Given that the new exchange provides wallet services to customers, BSP had previously considered whether it should be registered as an electronic money issuer. Fonacier said that internal negotiations opposed such a request in order to provide a streamlined registration process for new market participants:
"Now, we are perfecting the rules... If some of your business models use e-wallets, there will be additional requirements, but not necessarily electronic money licenses, and licenses are not automatically obtained."
According to reports, the Philippine Anti-Money Laundering Committee will begin to pay close attention to digital currency transactions as part of its fight against dirty money. The company will be obligated to report the transactions it covers and any transactions that they believe to be suspicious.
According to the "Business" report, the number of digital currencies exchanged with pesos has increased significantly in the past few years. In the first quarter of this year, the total transaction volume of the two registered exchanges was approximately $36 million per month.
In April of this year, the Philippine government announced that it would allow 10 blockchain and cryptocurrency companies to conduct business in the Cagayan Economic Zone. Enterprises are expected to create employment opportunities for local residents and thus receive tax breaks. The Cagayan Economic Zone Management Committee also requires companies to invest at least $1 million over two years and pay up to $100,000 in licensing fees.
In November last year, the Securities and Exchange Commission said it was considering classifying and legalizing the digital currency used in the Philippines. Earlier in the same year, BSP officially recognized Bitcoin as a legal payment method.