The Central Financial Institution of the Philippines, the country’s top crypto sector regulator, has warned traders against participating in unregistered and international crypto service providers. They “could present further challenges regarding the imposition of permitted remedies and customer safety and redress mechanisms for local customers, among others,” the regulator said.
Crypto Warnings from the Central Financial Institution of the Philippines
The central financial institution of the Philippines, Bangko Sentral ng Pilipinas (BSP), issued a public warning on Tuesday regarding unregistered and international crypto service providers. In the Philippines, the central financial institution is the premier regulator of the crypto sector.
The announcement states:
The Bangko Sentral ng Pilipinas (Bangko Sentral) strongly urges the general public not to bother with Digital Asset Service Providers (VASPs) which may be both unregistered or overseas domiciled.
The website of the central financial institution reveals that 19 VASPs were registered in June.
In addition to the risk of value volatility related to digital property (VA), the central bank defined that VASPs that may be based primarily offshore “could present other challenges to imposing authorized remedies and customer safety and repair for local prospects, among others.”
The Bangko Sentral pointed out:
VA transactions are generally considered high-risk actions that can result in significant monetary losses due to fluctuations in value.
Additionally, the central bank warned that the federal government does not provide security against monetary losses resulting from fluctuations in the value of cryptos. “The general public should form the warning, do their own due diligence, and always be aware of the dangers before participating in VA-related actions,” the regulator stressed.
Bangko Sentral ng Pilipinas urged the general public to instantly report illegal actions facilitated through cryptocurrencies and/or crypto service providers to the central financial institution.
Last week, the central bank announced that it would stop accepting new VASP license features for three years, starting September 1. hazards remain within manageable limits.
What do you think of the warnings from the central financial institution of the Philippines? Tell us in the comments section below.
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