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 towards Bitcoin companies in the region. Now the BSP deputy governor, Nestor Espenilla, has published a round (BSP Circular ???944) that defines the government’s position concerning Bitcoin operations. In the record, the BSP states that it aims to regulate monies that apply to all payment systems and remittance platforms. Basically, it applies to any operation that may have”material effect 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 rules and regulations which govern operations of virtual currency exchanges in two weeks and bitcoin casino binary options. The BSP circular notes that the guidelines aren’t endorsements of bitcoin and other currenciesbitcoincasino site However, the Bank does recognize that currency options have great potential. The governor’s circular states:
Bangko Sentral recognizes that Virtual Currency (VC) systems have the potential to revolutionize delivery of financial services, especially for payments and remittance, in view of the ability to provide quicker and cheaper transfer of capital, both domestic and global, and may further support financial inclusion.
Bitcoin Remittance Expert Weighs In
Bitcoin remittance expert Luis Buenaventura
Following the recent BSP statement, Bitcoin remittance specialist Luis Buenaventura revealed his view of the central bank’s policies and definitions. Buenaventura has done extensive research on Bitcoin’s connection by studying strategies and startups in the space like Bitspark and Abra. In his view, the guidelines in the Philippines define all digital currency exchanges to be treated as remittance businesses.
“It certainly appears like the intention is to take care of any business handling Bitcoin as a remittance agent, even though remittances aren’t the principal purpose of that company,” explains Buenaventura.
The new guidelines don’t provide any concessions for order-book exchanges which 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 kind of effect this will have on the Bitcoin startups operating within our borders, but I expect that it will not put the brakes.
The Central Bank is Learning About Bitcoin, But Definitions Are Too Broad
The business within the Philippines will have to wait and see how these policies take effect in the countrymBit bitcoin casino Buenaventura says bitcoin exchanges and remittance startups have made a lot of progress since 2013, but still have a long way to go. Furthermore, he is encouraged that the BSP spent a lot of time learning about Bitcoin, but the central bank has”vastly overestimated just how much of it is actually used for remittances.”
“From one angle, it’s good news that the government is finally recognizing that we exist and admit that our efforts do have a positive social impact on the country,” Buenaventura adds.
What do you think about the Philippine central bank regulating Bitcoin? Tell us in the comments below!
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