BSP Revises Regulation on Financial Consumer Protection
The Central Bank said they want to ensure “financial service providers” are conducting “ethical business practices” and do not engage in activities that will harm their customers.
The Central Bank said they want to ensure “financial service providers” are conducting “ethical business practices” and do not engage in activities that will harm their customers.
The Bangko Sentral ng Pilipinas (BSP) has advised banks in the Philippines to only deal with licensed virtual currency exchanges (VCEs) and exercise extreme due diligence when doing business with them.
Regulations only cover remittances or money changing businesses and not direct issuance as practiced by some groups into investment schemes.
The BSP is not keen on launching its own cryptocurrency despite the announcement of Facebook’s launching of the Libra cryptocurrency.
Operators of ATMS that allow purchase or exchange of virtual currencies like bitcoin must be registered with the BSP as VC Exchanges (VCEs).
A registered VCE complies with anti-money laundering laws and regulation, has appropriate security within their platform to manage risks, and provide consumer protection and customer support.
Mr. Diokno had a long career at the Department of Budget and Management and served as its secretary before he was appointed to the BSP.
Under Gov. Espenilla, the BSP adopted a cautious but not prohibitive approach towards emerging fintech trends like cryptocurrencies, protecting the public’s interest while at the same time allowing the market to innovate and for the industry to take advantage of fintech’s benefits and efficiencies.
Let’s break down the differences between a BSP license and a CEZA license, both can be obtained in the Philippines but with different functions altogether.
The Philippines’ Securities & Exchange Commission is still accepting comments & position papers from the public about its proposed ICO rules.