Bangko Sentral ng Pilipinas has widened the regulatory reach of cryptospace to cover all cryptocurrency financial service providers.
In line with the advent of clear-cut crypto regulations across Southeast Asia, the Philippine Central Bank, BSP, has implemented a wider licensing system for digital asset firms in the region.
According to the Philippine Daily Inquirer, all crypto financial service firms in the country must now be licensed by the BSP.
As a result, markets dealing with crypto-to-crypto trading pairs and custody networks must now receive clearance from the central bank. The extended regulatory regime even includes cryptocurrency futures platforms.
The crypto businesses in the world will also have to comply with global financial best practices, including Anti-Money Laundering and Fighting Terrorism Funding. As a consequence, cryptocurrency transactions beyond a certain amount would entail the detection of information for both the originator and the recipient groups.
For Benjamin Diokno, governor of the BSP, an extended regulatory regime is required to keep up with the speed of growth in cryptospace over the last three years. Back in 2017, BSP released guidelines for markets containing fiat-crypto trading pairs.
According to Diokno, the new regulations would close any regulatory gaps in the crypto financial services ecosystem, adding that the central bank is committed to balancing its support for financial innovation while retaining its supervisory obligations.
Back in 2020, the BSP is said to have started to pay off the issue of the digital currency of the central bank. However, the Philippine apex bank has come out to state that it is not ready to set up a digital sovereign currency, but is closely watching the scene.
Southeast Asia continues to be a global center for transparent finance with a positive outlook on new technology. Markets like Singapore and Thailand now boast an advanced electronic payment system.
As Cointelegraph has previously stated, Asia accounts for approximately 50% of global cryptocurrency exchange.
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