IMF’s Call for Data on Crypto Assets

The International Monetary Fund (IMF) has thrown a spotlight on the Philippines, advising its central bank to dive deep into the underwater currents of cross-border crypto asset flows. This recommendation was laid out in a Technical Assistance Report, emblematic of their growing concern over the financial statistics landscape as of December 30, 2019.

Why the Philippines?

One might wonder, why focus on the Philippines? A mission conducted in July 2019 revealed that the Bangko Sentral ng Pilipinas (BSP) is already paving the way by allowing operations for more virtual currency exchanges. With a total of ten approved exchanges, the report underscores that the Philippines could soon become a major player in the crypto market.

Mission Recommendations

The IMF’s recommendations were more than just casual chit-chat over coffee. It urged the BSP to start compiling data from these exchanges for macroeconomic analysis, especially regarding international financial flows. This would not only involve gathering reports of gross transactions but also a treasure trove of information indicating the origin and destination countries of these transactions. Imagine a spider web of economic activity, where knowing the players—individuals and corporations—can unearth valuable insights.

Key Data Points Suggested by IMF

• Quarterly aggregated data from exchanges.
• Details on the country of origin and destination of funds.
• Breakdown of transactions involving individuals and corporations.

The Thus Far Journey of the BSP

In this thrilling rollercoaster, the BSP has been anything but passive. Since February 2017, they’ve required domestic crypto exchanges to moonwalk into registration as remittance and transfer companies. The emphasis is on safeguards, aiming to mitigate risks associated with money laundering and terrorist financing. Talk about responsible parenting!

Contrasting Signals from the BSP

While the BSP seems to have embraced the crypto wave with open arms, they haven’t shied away from issuing stern warnings about potential misuse. Their governor has been vocal about the dangers cryptocurrencies pose, particularly regarding terrorism financing. It’s like saying, “Sure, go ahead and enjoy the party, but don’t set the place on fire!” This illustrates the delicate balance they must strike between innovation and caution.

The Future of Crypto in the Philippines

The interplay between the Philippines’ evolving digital asset landscape and the regulatory framework laid out by the BSP may set the stage for significant developments ahead. Just as the world gets a handle on traditional currencies, the emergence of these digital currencies begs a fresh look at financial stability and global economic interactions.