The reserve bank of the Philippines, Bangko Sentral ng Pilipinas, has actually revealed that it will stop accepting crypto license applications for 3 years, beginning next month. The reserve bank is the main regulator of the crypto sector in the Philippines.
Philippines Halts Accepting Crypto License Applications
The Philippine reserve bank, Bangko Sentral ng Pilipinas, revealed Wednesday that it will stop accepting brand-new Virtual Asset Service Provider (VASP) license applications for 3 years.
In a memorandum dated Aug. 10, the reserve bank discussed that it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”
The reserve bank included, “The Bangko Sentral recognizes that as VAs [virtual assets] offer opportunities to promote greater access to financial services at reduced costs, they also pose varied risks that may undermine financial stability,” elaborating:
In this regard, the routine application window for brand-new VASP licenses will be closed for 3 (3) years, beginning 01 September 2022, based on re-assessment based upon market advancements.
The reserve bank kept in mind that existing BSP-supervised banks that want to broaden operations by offering crypto services, consisting of custodial services, might still use for a VASP license supplied that they have a Supervisory Assessment Framework composite ranking of a minimum of “stable.”
The Bangko Sentral ng Pilipinas’ site reveals 19 authorized virtual possession company since June 30.
Last month, BSP Governor Felipe Medalla stated he does not desire cryptocurrencies prohibited however they need to be called crypto properties, not cryptocurrencies. He warned financiers not to put any cash they cannot manage to lose in crypto.
What do you think of the Philippines taking a three-year break from accepting crypto license applications? Let us understand in the remarks area listed below.
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