The Philippines Central Bank Legitimizes Bitcoin as Payment Method

Asia Cryptocurrency The Philippines
Maciek Klimowicz
Written by Maciek Klimowicz

In its latest circular titled “Guidelines for Virtual Currency (VC) Exchanges,” Bankgko Sentral ng Pilipinas (BSP), Philippines central bank indirectly recognizes cryptocurrencies as a legitimate payment method.

The circular specifies that while cryptocurrencies aren’t a legal currency as they are not issued by the central bank, regulation of cryptos and crypto-startups as remittance companies can be beneficial.

 “The Bangko Sentral does not intend to endorse any VC, such as Bitcoin, as a currency since it is neither issued or guaranteed by a central bank nor backed by any commodity. Rather, the BSP aims to regulate VCs when used for delivery of financial services, particularly, for payments and remittances, which have a material impact on anti-money laundering (AML) and combating the financing of terrorism (CFT), consumer protection and financial stability,” reads the circular.

To comply with the regulations, crypto companies will be required to apply for a license from the Central Bank of the Philippines.

About the author

Maciek Klimowicz

Maciek Klimowicz

A seasoned writer and editor with 10 years of experience in a variety of print and online media. Recognizing the transformative potential of the blockchain technology, Maciek has now put his pen to work to explore the key issues of this fast-evolving sector. Contact him on [email protected].

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