Does the legalization of 3 additional crypto exchanges in the Philippines encourage Filipinos to start adopting the “currency of the future”?
The Bangko Sentral ng Pilipinas (BSP) has given their approval on 3 more crypto exchanges in the country totaling it to 10. Over the years, the Philippines has become one of the nations in Southeast Asia to welcome cryptocurrencies. The utilization of virtual currencies has developed into a dynamic market for cryptocurrency businesses. The crypto-friendly regulations also helped kickstart the growth and progress of local companies.
According to statistics, the ratio of Filipino adults that use Coins.ph is 1 to 10. It is the largest crypto exchange platform in Southeast Asia. As such, it is no wonder that Indonesia’s ride-hailing Go-Jek is very eager to acquire the firm.
In Jan. 18, 2019, the Indonesian-based company announced its partnership with Coins.ph. It made a “generous investment” of $72 million in the Philippines’ local crypto wallet where it acquired a major share.
Coin.ph was launched in the Philippines back in 2014. Since then, it has accumulated $10 million from shareholders by means of 2 ventures and 2 Series A funding rounds. Users of the leading crypto exchange can send, receive, and buy 4 major cryptocurrencies. These are Ethereum (ETH), Bitcoin (BTC), Bitcoin Cash (BCH), and Ripple (XRP).
Pantera Capital is the first foremost billion-dollar cryptocurrency fund. Its CEO, Dan Morehead, who is also an investor in Coins.ph once said:
“A week or so ago, we announced that we sold Coins.ph in the Philippines and I think that is a great example of Bitcoin’s actual usage now and not 20 years from now. They have one out of ten adults in the Philippines as a customer. That’s very real. I think it is important for the community to really know that there are applications that are working right now.”
In February 2017, cryptocurrencies were legalized in the Philippines as a means to receive remittances. It was issued through a circular by the Bangko Sentral ng Pilipinas which accelerated the development of the cryptocurrency sector.
BSP does not promote VC as currency
According to the circular, the Bangko Sentral ng Pilipinas does not endorse or consider any virtual currency (like Bitcoin) as a currency. That is because it not issued or guaranteed by BSP or supported by any entity. The central bank instead intends to control virtual currencies when utilized for transferring of financial services. These, in particular, are payments and remittances which have a substantial effect on anti-money laundering or AML. This also includes countering the financing of terrorism, protection of the consumer and financial solidity.
Blockchain and crypto companies approved in CEZA
The Philippine government announced its approval of the operation of 10 blockchains and crypto companies in the Cagayan Economic Zone Authority (CEZA) in April. Companies are anticipated to produce jobs for local residents in return for tax breaks. CEZA will likewise necessitate businesses to invest at least $1 million in the course of 2 years aside from paying up to $100,000 in license fees.
The economic zone tasked the Digital Asset Token Offering (DATO) systems to manifest the purchasing of crypto assets including utility and security tokens. The Asia Blockchain and Crypto Association (ABACA), on the other hand, is the assigned Self-Regulatory Organization (SRO) to establish and execute the new guidelines.
The approval of additional crypto exchanges in the Philippines only indicates the acceptance of cryptocurrencies by users, investors, and businesses. The government should also regulate the exchange in the crypto market to avoid monopolization.