Following the recent issues about digital asset providers, homegrown crypto exchange Philippine Digital Asset Exchange (PDAX) reminded Filipinos that they are licensed and regulated by the Bangko Sentral ng Pilipinas (BSP).
In a Facebook post, PDAX explained the importance and benefits of a BSP license when choosing a crypto exchange.
“When you use a licensed crypto exchange, you can trade confidently knowing that the platform is following all government rules and regulations. This creates a safe environment for everyone involved.” –PDAX
PDAX said one of the benefits of a licensed exchange is that users can prevent their bank accounts from getting closed or frozen. Also, users will have “peace of mind knowing (their) data is secured.”
Benefits of Trading on a BSP-Licensed Crypto Exchange by PDAX
- Avoid Bank Closure – scared of getting your funds frozen or closed by your bank? You can prevent that from happening when you transact with a licensed crypto exchange.
- Get Peace of Mind Knowing Your Data is Secured – obtaining a license from a regulator requires Virtual Asset Service Providers (VASPs) to put in place rigorous measures to protect user’s assets and data. So you can be sure that your security is a top priority.
- Trade Safely – When you use a licensed crypto exchange, you can trade confidently knowing that the platform is following all government rules and regulations. This creates a safer environment for everyone involved.
Recently, cryptocurrency exchange Binance, which has a presence in the Philippines, stated its desire to acquire Virtual Asset Service Provider (VASP) license locally. Yet days after, Infrawatch PH, a public policy think tank in the Philippines sent a letter to the BSP to suspend and ban Binance, and stop it from acquiring a VASP license because it operated in the country without it. (Read more: BSP Urged to Ban Binance For Illegally Operating in the Philippines)
Virtual Asset Service Providers are defined by the Bangko Sentral ng Pilipinas (BSP) as entities that facilitate exchange between virtual assets and fiat currencies, exchange between virtual assets, transfer of virtual assets, and custody of these assets.
BSP requires the VASP to secure a Certificate of Authority (COA) and must comply with pertinent BSP rules and regulations. They are also considered Money Service Businesses (MSBs).
Aside from PDAX, crypto exchange Coins.ph, Maya (formerly Paymaya), Facebook’s digital wallet Novi and others also have a VASP license from the BSP. PDAX received its license in 2018. (Read more: PH Central Bank Approves PDAX as New Virtual Currency Exchange)
Recently, the exchange partnered with Cignal TV, a sports network, for the University Athletics Association of the Philippines (UAAP) Games Season 84, a collegiate basketball tournament in the country. (Read more: Cignal TV Partners with PDAX for UAAP Season 84)
Aside from its crypto offerings, PDAX will now also venture into the non-fungible token (NFT) space and play-to-earn gaming after it successfully raised more than $50 million in a funding round led by Tiger Global. (Read more: PDAX Raises $50M to Support NFT and Play-to-earn in the Philippines)
This article is published on BitPinas: PDAX Reminds Users They Are a BSP-Licensed Exchange
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.