BANGKO SENTRAL ng Pilipinas (BSP) Cancels Licences of Two Firms

THE BANGKO SENTRAL ng Pilipinas (BSP) has cancelled two virtual asset service provider (VASP) firms’ registration licences and banned three year’s ban to operate in the country for not implementing stringent anti-money laundering regulations. 

Two companies’ licences to operate as virtual asset service providers have been revoked by the Philippines’ regulatory authority, BANGKO SENTRAL ng Pilipinas (BSP). Circular letters dated December 1st, signed by BSP Deputy Governor, Chuchi G. Fonacier, stated that the Monetary Board cancelled the Certificates of Registration of B-Express, Inc. and Coinville Phils., Inc. As of the end of June 2022, both businesses were one of the 19 organisations in the Philippines with VASP licences. Starting on September 1st, 2022, the BSP banned VASP licensing for a period of three years.

In March 2019, the BSP granted a virtual currency licence to B-Express, a South Korean cryptocurrency company, enabling it to conduct crypto-to-fiat transfers within the Philippines. In the meantime, Coinville Phils. received authorisation in April 2019 to function as a remittance and transfer business offering virtual currency exchange services. 

A VASP is defined as “any entity that offers services or engages in activities that provide facility for the transfer or exchange of virtual assets,” such as bitcoin, in accordance with BSP Circular No. 1108. Virtual asset swapping, virtual asset transfers, and the storage, management, and management of virtual assets or assets that provide virtual asset control are among the VASP operations that the central bank oversees. 

In 2021, the BSP tightened cybersecurity measures for cryptocurrencies, particularly those pertaining to VASPs, which are obligated to comply with the central bank’s anti-money laundering and licensing regulations. The central bank claims that digital currencies make transfers easier and more affordable, but it additionally warned individuals about the threats associated with them, such as their volatile value, possible use as a tool for illegal activities, and cybersecurity concerns.

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