In line with the emergence of clear crypto regulations in Southeast Asia, the Philippines’ central bank, BSP, has introduced a broader licensing regime for digital asset companies in the country.
According to According to the Philippine Daily Inquirer, all crypto-financial services providers in the country must now be licensed by the BSP.
Therefore, exchanges dealing in crypto-to-crypto trading pairs and custody platforms must now get approval from the central bank. The comprehensive regulatory regime also covers cryptocurrency derivatives platforms.
All crypto companies in the country will also need to adhere to global financial best practices, including anti-money laundering and counterterrorism financing. As a result, cryptocurrency transfers above a certain threshold will require identification information for both the originator and the beneficiary parties.
For Benjamin Diokno, governor of the BSP, the extensive regulatory regime is needed to keep up with the pace of development in the crypto space over the past three years. In 2017 was the BSP rules issued for exchanges involved in fiat crypto trading pairs.
According to Diokno, the new rules will close any regulatory loopholes in the crypto-financial services ecosystem, adding the central bank’s commitment to a balance between fostering financial innovation and maintaining its supervisory responsibilities.
In 2020, the BSP reportedly started consider issuing a digital currency from a central bank. However, the Philippines’ top bank has come out to say it is not ready to create a sovereign digital currency, but actively monitors the scene.
South East Asia remains a global open finance hub with a positive bias towards emerging technologies. Markets like Singapore and Thailand already have one advanced electronic payments ecosystem.
As previously reported by Cointelegraph, Asia accounts for almost 50% of global cryptocurrency trade.