Central Bank Of Philipines Issues Warning To Public About using Regulated Crypto Exchanges

The central bank of the Philippines recently issued a warning to the public urging them only to use regulated crypto exchanges so that they don’t have to fall victim to any scams, when it comes to trading cryptocurrencies. The Bangko Sentral ng Pilipinas (BSP) warned the public on June 17 to use only those digital currency exchanges which have been approved to operate in the country.

They said that though many smaller operations and individual crypto traders might be offering their service, even at lower rates,  it was of utmost importance that the public stick to the accredited businesses. They posted on Twitter regarding the same and said,

“The BSP advises the public that operators of ATMs that allow purchase or exchange of Virtual Currencies such as Bitcoin, must be registered with the BSP as VC Exchanges under Circular No. 944.”

The Circular 944 which goes back to February 6, 2017, elucidates and regulates how exchanges must operate in the Philippines, including issues like their registration, operation and reporting to the government. The BSP also tweeted,

“The BSP recommends that VC users deal only with BSP-registered VCEs, and maintain only a sufficient amount of VC to cover transactional requirements.”

They also reminded the public that the BSP does not recognise digital currencies as a form of legal tender or investment. They did not however say that it shouldn’t be used though, as digital currencies have become an essential method of money remittance, a vital type of transaction for many Filipinos who depend on money sent home from abroad.

The warning is a necessary one as the cryptocurrency industry has been achieving new and newer highs.

This reminder to use digital currencies as what they are intended to be, currencies, and to only use well-regulated exchanges, is an essential message for any country, but especially the Philippines, where honest, well-intended crypto enthusiasts may be in need of a little more reminding that cryptocurrencies are intended to be for transactions, and not a get rich quick scheme.