The number of permitted digital currency exchanges are increasing in the Philippines. Now they are competing with Japan in supporting the digital currency exchanges. Recently the central bank of the country, BSP has approved 11 new cryptocurrency exchanges, in addition to 37 exchanges approved by Economic Zone Authority Cagayan (CEZA).
One of the significant banks of the country has also started Bitcoin ATM in their main branch. The newly listed exchanges can now go live in the country for virtual currency exchange transactions.
The chief bank of the country has issued Circular number 944 as a regulatory approach for the digital currencies. The bank has told any exchange dealing with cryptocurrencies in exchange of Peso needs to be registered with BSP. They have marked those exchanges as remittance and transfer companies.
One of the significant banks of Philippines Union bank has got approval from BSP to install bitcoin ATM in their main branch premises. UCP has also tied up with cryptocurrency exchange Coins.ph.
BSP has told they are not permitting any individual to install cryptocurrency ATM in any location of the Philippines without their authorization. In the notice, they have mentioned that anyone who wants to operate cryptocurrency ATMs needs to comply with the circular mentioned above.
In addition to this, the bank has also mentioned that for trading and ICO of cryptocurrencies, the platform may have to take permission from the Securities and Exchange Commission. In inclusion to 11 exchanges approved by BSP, CEZA has also approved 37 crypto exchanges. CEZA is a government recognized firm, working as a sandbox for the progress of blockchain and other innovative technologies.
Presently CEZA has given license to these 37 companies under two sections. OVCE principal license is being given to 24 firms while 13 firms are given OVCE regular permit. The firms can conduct cryptocurrency exchange and offshore fintech commercial activities depending on their license type.
It is difficult for anyone to obtain a license from BSP for any cryptocurrency related business. But the permission of CEZA comes with several restrictions as well. But both the government organization believes that cryptocurrency has the possibility to transform the financial services.