The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, announced the introduction of mandatory licensing for companies providing cryptocurrency services. This was reported by the local publication Inquirer.
Platforms dealing with digital assets such as cryptocurrency derivatives platforms, exchanges and custody services will have to demonstrate compliance with the regulator’s anti-money laundering and counter-terrorism financing requirements.
“In the past three years, we have seen growing popularity of virtual currency exchanges. The time has come to broaden existing regulations in light of the development of this financial innovation and to establish appropriate risk-management standards,” said BSP Governor Benjamin Diokno.
The regulator noted that cryptocurrency exchanges began obtaining licenses as early as 2017.
Companies will also need to identify and retain information on users involved in transactions exceeding 50,000 Philippine pesos (about $1,000).
In 2018, Philippine authorities allowed crypto companies to operate in a special economic zone where they received tax incentives.
In July 2020, BSP began examining the possibility of issuing its own digital currency, but in October questioned the prospect of a CBDC launch.
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