In line with the emergence of clear crypto-regulations in Southeast Asia, the Central Bank of the Philippines, BSP, has introduced a broader licensing system for digital asset companies in the country.
According to the Philippine Daily Inquirer, all crypto-financial services companies in the country must now have a BSP license.
As such, exchanges that trade cryptocurrency pairs and custodian platforms must now receive approval from the central bank. The extended regulatory regime also applies to derivatives of cryptocurrencies.
All crypto companies in the country will also be required to comply with global economic best practices, including money laundering and terrorist financing. As a result, cryptocurrency conversions that exceed a certain limit will require identification information for both sender and recipient.
According to Benjamin Diokno, CEO of BSP, there is a need for an expanded regulatory system to keep pace with developments in the crypto space over the past three years. Back in 2017, BSP issued rules for exchanges that participated in cryptocurrency trading.
The new rules will close any regulatory loopholes in the crypto-financial services system, Dioceno said, adding that the central bank seeks to find a balance between promoting economic innovation while preserving its supervisory functions.
It is reported that in 2020, the payment of the bill settlement (BSP) began to study the problem with the central bank’s digital currency. However, one of the leading banks in the Philippines said that it was not ready to create a superb digital currency, but actively monitored the situation.
Southeast Asia remains an open source global financial center with a positive attitude towards new technology. Markets such as Singapore and Thailand already have a sophisticated electronic payment system.
As Cointelegraph previously reported, Asia accounts for almost 50% of global cryptocurrency trading.