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.