Editing and additional reporting by Michael Mislos
Changpeng Zhao (aka CZ), CEO of the world’s largest cryptocurrency exchange Binance, announced that the firm is planning to procure licenses from the financial regulators in the Philippines. Binance’s initiative aims to provide more localized services in the country and pour in investment in local banks and payment service providers.
The two licenses that Binance is interested in, according to CZ, are the virtual assets service provider (VASP) license and the e-money issuer (EMI) license from the Bangko Sentral ng Pilipinas (BSP). The VASP license authorizes a company to legally convert fiat to pesos and vice versa. EMI license authorizes the holder to operate and disburse electronic money. (Read More: List of Licensed Virtual Currency Exchanges in the Philippines)
According to CZ, the country is “super important” because of its already advanced payment system and that Filipinos already know crypto. Therefore he wants Binance to have a more localized service in the country. To do this, they need to get licensed and work closely with regulators.
“There are at least two licenses that we are interested in. There is VASP (Virtual Asset Service Provider) license. There is an EMI license, which is more for traditional services,” CZ stated. (Read more: ANC Reporter Says Binance is Looking to Get a VASP License in the Philippines)
BitPinas earlier reported that the company is planning to secure the VASP license here.
CZ guaranteed that Binance will “work very closely with governments to help crafting regulations and provide its expertise in the space.
However, CZ noted that regulation can only reduce – not eliminate – the risks. The CEO said that he has already met with some local officials to discuss securing the licenses, and he expects them to be obtained within months. CZ did say he does not control the timeline.
While expanding globally, the US Securities and Exchange Commission (SEC) opened an investigation on Binance over the 2017 initial coin offering of its BNB token, which is now the world’s fifth-biggest coin. The Commission is said to be examining whether the token’s offering constitutes a security sale, which would have needed to be registered with the agency. (Read more: US SEC Probes Binance Over its BNB Token)
Binance has also secured regulatory approval in France.
This article is published on BitPinas: CZ: Binance Philippines Plans to Acquire a Crypto Exchange VASP License from the BSP
Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.