New Virtual Currency Policies Coming to the Philippines
Philippine Central Bank Deputy Governor Nestor A. Espenilla
Bitcoin.com reported last June that the Philippines central bank, Bangko Sentral ng Pilipinas (BSP), was preparing new guidelines involving Bitcoin companies in the region. Now the BSP deputy governor, Nestor Espenilla, has published a circular (BSP Circular ???944) that defines the government’s position concerning Bitcoin operations. In the record, the BSP states that it intends to regulate monies that apply to remittance platforms and all payment systems. Essentially, it applies to any operation that may have”material impact on anti-money laundering (AML) and combating the financing of terrorism (CFT), consumer protection and financial stability,” explains the BSP.
The central bank will begin implementing the regulations and rules that govern operations of virtual currency exchanges in two weeks and bitcoin casino binary choices . The BSP circular notes that the new guidelines are not endorsements of other and bitcoin digital currenciesBitcoinRush rating However, the Bank does recognize that digital currency solutions have potential. The deputy governor states:
Bangko Sentral recognizes that Virtual Currency (VC) systems have the potential to revolutionize delivery of financial services, particularly for payments and remittance, in view of the ability to provide quicker and cheaper transfer of funds, both domestic and international, and might further encourage financial inclusion.
Bitcoin Remittance Expert Weighs In
Bitcoin remittance specialist Luis Buenaventura
Following the BSP statement, Bitcoin remittance expert Luis Buenaventura revealed his opinion of the central bank’s definitions and policies. Buenaventura has done extensive research on Bitcoin’s connection with remittances by studying strategies and startups in the crypto-remittance area like Bitspark and Abra. In his view, the guidelines in the Philippines define all money exchanges to be treated as remittance companies.
“It certainly appears like the purpose is to take care of any business dealing with Bitcoin for a remittance agent, even though remittances aren’t the principal purpose of the firm,” explains Buenaventura.
The new guidelines don’t provide any concessions for order-book exchanges that don’t have any international footprint, nor do they clarify the situation for sole proprietors buying and selling BTC on Localbitcoins. I’m unsure what sort of impact this will have on the Bitcoin startups operating within our borders, but I hope that it will not put the brakes on the innovative momentum that’s been building up over the past few years.
The Central Bank is Learning About Bitcoin, But Definitions Are Too Wide
The Bitcoin industry within the Philippines will have to wait and see how these policies take effect in the country Buenaventura says remittance startups and bitcoin exchanges have made plenty of progress but still have a long way to go. Furthermore, he’s encouraged that the BSP spent a lot of time learning about Bitcoin, however, the central bank has”vastly overestimated how much of it is actually used for remittances.”
“From one angle, it is good news that the government is finally recognizing that we exist and acknowledge that our efforts do have a positive social impact on the nation,” Buenaventura adds.
What do you think about the Philippine central bank regulating Bitcoin? Tell us in the comments below!
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