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 businesses 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 document, the BSP states that it aims to regulate currencies that apply to remittance platforms and all payment systems. Essentially, 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 start implementing the regulations and rules that govern operations of digital currency exchanges in two weeks and bitcoin casino binary options. The BSP circular notes that the guidelines aren’t endorsements of bitcoin and other currenciesis bitcoin accepted in the casino bitcoin casino no deposit bonus 2017 The Bank does recognize that currency options have potential. The governor states:
Bangko Sentral admits that Virtual Currency (VC) systems have the potential to revolutionize delivery of financial services, particularly for payments and remittance, in view of their capacity to provide quicker and more economical transfer of capital, both domestic and international, and may further encourage financial inclusion.
Bitcoin Remittance Expert Weighs In
Bitcoin remittance expert Luis Buenaventura
After the BSP circular announcement, Bitcoin remittance specialist Luis Buenaventura revealed his opinion of the policies and definitions of the central bank. By studying strategies and startups in the crypto-remittance space like Abra and Bitspark, buenaventura has done extensive research on the relationship of Bitcoin with international remittances. In his opinion, the guidelines in the Philippines specify all 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 are not the principal purpose of the company,” explains Buenaventura.
The new guidelines don’t offer any concessions for order-book exchanges which have no worldwide footprint, nor do they clarify the situation for sole proprietors buying and selling BTC on Localbitcoins. I hope that it will not put the brakes, although I’m unsure what sort of impact this will have on the Bitcoin startups operating within our borders.
The Central Bank is Learning About Bitcoin, But Definitions Are Too Wide
The Bitcoin business within the Philippines will have to wait and see how these policies take effect in the nationbitcoin casino sign up bonus bitcoin casino with high payout chance Buenaventura says exchanges and remittance startups have made a lot of progress 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 how much of it is actually used for remittances.”
“From one angle, it is very good news that the government is finally recognizing that we exist and acknowledge that our efforts do have a positive social effect on the country,” Buenaventura adds.
What do you consider the Philippine central bank regulating Bitcoin? Tell us in the comments below!
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