Home News BSP To Approve Accredited Companies To Operate Virtual Currency Exchanges

BSP To Approve Accredited Companies To Operate Virtual Currency Exchanges

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In response to the growing number of Bitcoin investors after it rose to an all-time high this year, the Bank Sentral ng Pilipinas (BSP) is taking precautionary measures to enhance the protection of the financial consumers.

Bitcoin hit another all-time peak last Tuesday, reaching $17,428.42 PhilStar reports.

BSP is currently fast-tracking the two-stage evaluations for the applications of 12 virtual currency exchange operators in accordance with its bid for safety.

Virtual Currency
PHOTO CREDIT: Pixabay

Deputy director and head of the BSP’s core information technology specialist group, Melchor Plabasan said that the central bank is currently evaluating the applications of the 12 companies who proposed to operate virtual currency exchanges.

According to Plabasan, out of the 12, four already completed their requirement and the presentation of their business models. The other eight are still completing their requirements.

“We are fasttracking the registration of the 12 applicants,”

Plabasan also said that BSP already approved the application of Rebittance Inc. and Betur Inc. (Coins.ph) to operate virtual currency exchanges in the country.

The most popular virtual currency today is Bitcoin. Bitcoin hit another all-time peak last Tuesday, reaching $17,428.42.

Today, the volume of transactions in the Philippines averages $8.8 million in the first half, more than four times the $2 million per month average in 2015.

It is widely recognized that virtual currency may in time revolutionize the way of paying and transferring funds.

As a safety measure, though, Plabasan reminded the public that payout that is amounting to more than P500,000 should be done through checks of bank deposits.

“We just regulate, we don’t endorse virtual currency because it’s not currency. We only regulate if it is used in delivering financial services like remittance,”

He also added that the BSP started to monitor virtual currency in 2014. He also added that BSP is set to release an advisory to warn the public about scams.

He explained there’s a lot of pyramid schemes right now disguising as initial coin offerings.

“We want to advise the general public to be wary of these,”

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