March 23, 2019
Bangko Sentral ng Pilipinas (BSP)-supervised financial institutions need to register automated teller machines (ATMs) that offer virtual currencies, a senior central bank official said.
In March 14 memorandum, BSP Deputy Governor Chuchi Fonacier said that “operators of ATM that allow purchase or exchange of VCs (for example, bitcoin) or other devices with similar functionality and capability, are considered VCEs (virtual currency exchanges) and should register with the BSP.”
The reminder is pursuant to BSP Circular 944 that refers to VCEs as any entity that offers services or engages in activities that provide for the conversion or exchange of fiat currency to VCs or vice versa.
A virtual currency is any type of digital unit that is used as a medium of exchange or a form of digitally stored value created by agreement within a community of users.
Circular 944 also provides detailed rules and regulations governing the registration, operations and reporting obligations of VCEs in the Philippines.
“As registered VCEs, they should comply with anti-money laundering/terrorist financing laws and regulations, ensure sufficient and appropriate controls and governance framework are adopted to manage the associate technology and other operational risks, and put in place adequate consumer protection and customer support, among others,” Fonacier stressed.
Seven VCEs — Fyntegrate Inc., ZyBi Tech Inc., Betur Inc., Rebittance Inc., BloomSolutions, ETranss and Virtual Currency Philippines Inc. — have so far been allowed to operate in the country by the BSP
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