The Central Bank of the Philippines, the main regulator of the crypto sector in the country, has warned investors about engaging with unregistered and foreign crypto service providers. They “may present additional challenges, particularly with respect to enforcement of legal instruments and consumer protection and redress mechanisms for local customers,” the regulator said.
Central Bank of the Philippines Crypto Alert
The Philippines’ central bank, the Bangko Sentral ng Pilipinas (BSP), issued a public warning Tuesday regarding unregistered foreign crypto service providers. In the Philippines, the central bank is the primary regulator of the crypto sector.
The announcement stated.
Bangko Sentral ng Pilipinas (Bangko Sentral) urges you not to do business with unregistered or offshore resident virtual asset service providers (VASPs).
The central bank’s website indicates that 19 VASPs were registered as of June.
In addition to the risks from price volatility associated with virtual assets (VAs), the Central Bank explained that VASPs based abroad “may present additional challenges, particularly with regard to the implementation of legal remedies and consumer protection and redress mechanisms for local customers.”
Bangko Sentral stressed.
VA trading is generally considered to be a high-risk activity with the potential for huge financial losses due to price fluctuations.
In addition, the central bank warned that the government does not guarantee protection against financial losses resulting from crypto price fluctuations.” The public should exercise caution, conduct their own due diligence, and always be aware of risks before engaging in VA-related activities,” the regulator stressed.
Bangko Sentral ng Pilipinas urges the public to immediately report any illegal activities facilitated through cryptocurrencies and/or crypto service providers to the Central Bank.
Last week, the Central Bank announced that it will stop accepting new VASP license applications for three years starting September 1. The regulator explained that the move is aimed at “striking a balance between promoting innovation in the financial sector and ensuring that the associated risks remain at manageable levels.”
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