Connect with us

Coin Market

Philippine Regulator Warns the Public of Engaging With Foreign Crypto Service Providers

Published

on

The central bank of the Philippines, the primary regulator of the country’s crypto sector, has warned investors about engaging with unregistered and foreign crypto service providers. They “may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others,” the regulator said.

The Philippine Central Bank’s Crypto Warnings

The central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), issued a public warning 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 domiciled abroad.

The central bank’s website shows that 19 VASPs have been registered as of June.

Besides the risk from price volatility associated with virtual assets (VAs), the central bank explained that VASPs that are based abroad “may present additional challenges on enforcing legal recourse and consumer protection and redress mechanisms for local customers, among others.”

The Bangko Sentral emphasized:

VA dealings are generally considered as high-risk activities which may result in huge financial losses due to price swings.

Furthermore, the central bank warned that the government does not guarantee protection against financial losses stemming from crypto price fluctuations. “The public should exercise caution, conduct their own due diligence, and always be mindful of the risks prior to engaging with VA-related activities,” the regulator emphasized.

Bangko Sentral ng Pilipinas has urged the public to immediately report unlawful activities facilitated through cryptocurrencies and/or crypto service providers to the central bank.

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

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

The post Philippine Regulator Warns the Public of Engaging With Foreign Crypto Service Providers first appeared on RealTimeBit.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Coin Market

OP_CAT could go live on Bitcoin within 12 months: Eli Ben Sasson

Published

on

By

If approved, OP_CAT will introduce drastic changes to the Bitcoin network, including covenants, ZK-rollups, and even Bitcoin-native layer 2 networks. 

Continue Reading

Coin Market

Tap and Pay crypto coming to Coinbase Wallet, L2 interoperability in months

Published

on

By

Jesse Pollak, the creator of the Ethereum layer-2 network Base, expects the Coinbase Wallet feature to be available for users in 50 countries by the end of 2025.

Continue Reading

Coin Market

Crypto firms push for SEC changes, crypto out of courts

Published

on

By

After securing a Republican Senate and a pro-crypto White House, crypto firms are now pushing for reforms at the SEC.

Continue Reading

Trending