It was not long ago when the Philippines was one of the most friendly countries to the cryptocurrency industry. The country had welcomed and adopted cryptocurrencies with open arms, suggesting that it wanted to become a crypto hub.
Things have changed in the Philippines
Now, things seem to be changing in the Philippines as the country has changed its stance toward the cryptocurrency sector. The country has adopted a new policy, which would see the country bar foreign cryptocurrency exchanges from operating in the Philippines.
The pressure is now increasing on the cryptocurrency sector and its level of increment is swift.
Controversial Moves by Philippines’ Regulators
It has been noticed that the regulatory authorities and the local think tanks from the Philippines have started making controversial moves recently.
Due to the recent controversial events, the central bank of the Philippines has issued a warning. The warning has been issued for the citizens of the country, strictly advising them that it is unsafe to engage with cryptocurrency exchanges.
A discouraging statement has been issued by the central bank of the Philippines advising them not to interact with cryptocurrency exchanges or cryptocurrency trading platforms that are unlicensed.
As per the regulators, no unlicensed entity in the Philippines is allowed to offer cryptocurrency trading services to the locals. Therefore, the local users must remain cautious when dealing with such cryptocurrency exchanges or trading platforms.
The local regulatory body has emphasized that the local users must refrain from dealing with unregistered foreign cryptocurrency exchanges or trading platforms.
Impact on Cryptocurrencies
Although the announcement is not menacing for the locals at all it will have a widespread impact on the cryptocurrency sector.
The Philippines has a population of 112 million, which is a very high population. The cryptocurrency sector had to operate for over a decade to achieve a user base of 100 million.
With the latest announcement by the central bank of the Philippines, a country with a 112-million population has become restless.
The announcement by the central bank of the Philippines would act as a huge upset for the cryptocurrency sector that had been thriving in the country for a while.
Notice Issued by Bank of Philippines
According to the central bank of the Philippines, locals interacting with unregistered cryptocurrency firms and cryptocurrency assets will be doing it at their own risk.
If they end up facing a loss or losing their cryptocurrencies in the process to unregistered firms, they will have no regulatory coverage.
The regulatory authorities in the Philippines have announced that they will be launching an investigation on the VASPs. They will investigate whether the VASPs was following the necessary steps when facilitating foreign cryptocurrency exchanges.
If the VASPs failed to adhere to the local regulatory protocols, the regulators will be acting against them according to the law.