Philippine regulator warns public against cooperation with foreign crypto service providers – Bitcoin News Regulation

Philippine regulator warns public against cooperation with foreign crypto service providers – Bitcoin News Regulation

The Central Bank of the Philippines, the primary regulator of the country’s crypto sector, has warned investors against cooperating with unregistered and foreign crypto service providers. They “may present additional challenges in applying legal remedies and consumer protection and redress mechanisms for local customers, among others,” the regulator said.

Philippine Central Bank Crypto Alerts

The Philippines’ central bank, the Central Bank of the Philippines (BSP), issued a public warning on Tuesday regarding unregistered and foreign crypto service providers. In the Philippines, the central bank is the primary regulator of the crypto sector.

The announcement states:

The Bangko Sentral ng Pilipinas (Bangko Sentral) strongly urges the public not to deal with Virtual Asset Service Providers (VASPs) that are either unregistered or based abroad.

The website of the central bank shows that 19 VASPs were registered by June.

In addition to the risk of price volatility associated with virtual assets (VA), the central bank explained that overseas-based VASPs “may present additional challenges in applying legal remedies and consumer protection and redress mechanisms for local clients, among others”.

The Bangko Sentral emphasized:

VA jobs are generally considered high-risk activities that can result in large financial losses due to price changes.

Furthermore, the central bank warned that the government does not guarantee protection against financial losses arising from cryptocurrency price fluctuations. “The public should exercise caution, conduct their own due diligence and always be mindful of the risks before engaging in VA-related activities,” the regulator stressed.

The Bangko Sentral ng Pilipinas urged the public to immediately report to the central bank illegal activities facilitated through cryptocurrencies and/or crypto services.

Last week, the central bank announced that it will stop accepting new applications for VASP licenses for three years, starting September 1. The regulator explained that it “seeks to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”

What do you think of the Philippine central bank’s warnings? Let us know in the comments section below.

Philippine regulator warns public against cooperation with foreign crypto service providers – Bitcoin News Regulation

Kevin Helms

An Austrian economics student, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His interests lie in bitcoin security, open-source systems, network effects, and the intersection between economics and cryptography.




Image Credits: Shutterstock, Pixabay, Wiki Commons

Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any product, service or company. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by the use of or reliance on any content, goods or services mentioned in this article.

(function(d, s, id) {
var js, fjs = d.getElementsByTagName(s)[0];
if (d.getElementById(id)) return;
js = d.createElement(s); js.id = id;
js.src=”https://connect.facebook.net/en_US/sdk.js#xfbml=1&version=v3.2″;
fjs.parentNode.insertBefore(js, fjs);
}(document, ‘script’, ‘facebook-jssdk’));



Source link

Leave a Reply