BSP’s Cryptocurrency Exchange Regulations: A Slow Start for Applicants

Understanding the Regulatory Landscape

The Bangko Sentral ng Pilipinas (BSP) initiated a new regulatory framework for cryptocurrency exchanges back in February 2017, aiming to set the stage for a more secure digital currency environment in the Philippines. However, the anticipated boom in applications for exchange licenses has been more of a gentle ripple than a tsunami, leaving industry watchers scratching their heads.

Current State of Applications

As it stands, fewer than ten licenses have been applied for under the new framework, according to BSP’s Chuchi Fonacier. This low figure has raised some eyebrows at the central bank, which expected a larger influx of companies eager to jump into the crypto-foray. Fonacier’s statement emphasized that while they are reviewing the business models submitted by these few brave applicants, there’s still a notable delay as additional requirements trickle in. It’s like waiting for a pot to boil, only to find it simmering instead!

Decoding the Dismal Numbers

So, why the snail’s pace? Several factors seem to be at play:

• Regulatory Complexity: The layers of compliance required, including anti-money laundering (AML) and know your customer (KYC) standards, might be daunting for many startups. Think of it as trying to assemble IKEA furniture without the instruction manual—confusing and possibly painful.
• Ongoing Reporting: Regular reporting to the BSP on trading volumes and digital currency usage could feel like setting up a weekly reminder to clean out your garage—tedious, but necessary.

The BSP’s Stance on Future Regulations

BSP officials have made it clear that no new regulations are on the horizon. They’re content to continue monitoring market developments, similar to a referee keeping a close eye on a not-so-competitive game of chess. Fonacier indicated that should any significant risks bubble up, the BSP is ready to take action. Think of them as the lifeguards at a kiddie pool, prepared to intervene if things get too splashy.

The Future of Crypto Trading in the Philippines

Despite the slow start, there is a sense of cautious optimism surrounding the BSP’s approach in regulating cryptocurrencies. By focusing on their use for financial services, particularly for payments and remittances, the central bank is prioritizing safety without stifling innovation.

In the world of cryptocurrencies, patience may be a virtue, but vigilance remains a necessity!