Philippines Central Bank Approves Two New Cryptocurrency Exchanges

Blockchain Companies

Bangko Sentral ng Pilipinas, the central bank of the Philippines has approved two new cryptocurrency exchanges, bringing the total number of approved crypto exchanges to five alongside Rebittance, Inc. and Betur, Inc. (known as and BloomSolutions reported Business World.

Bangko Sentral ng Pilipinas (BSP) deputy governor Chuchi G. Fonacier said

“The regulator has approved applications filed by Virtual Currency Philippines Inc. and Etranss as platforms to convert pesos into virtual currencies (VC) like bitcoin and ethereum”

The BSP has recognized the benefits of cryptocurrencies in terms of faster and cheaper remittances. Conversions from the peso to cryptocurrencies have grown rapidly over the past few years. In the first quarter, amounts averaged $36.74 million per month covering transactions from two registered exchanges. Monthly volumes hit $38.27 million between October and December last year.

Fonacier further said that

“The BSP will unlikely proceed with the earlier proposal requiring VC exchanges to secure separate licenses to operate as electronic money issuers.

Previously, the national bank official said that they are considering whether these trades need to join as e-money issuers given that they keep up e-wallets for customers. Ms. Fonacier said inner meetings demonstrated that it may not be advisable, in an offered to keep the enlistment procedure basic for these new players. All the e-money issuers will require VC exchanges to hold a minimum capital of P100 million.

Fonacier further explained that

“Now, we are refining the rules… If your business model has a portion making use of e-wallet, then there’s an additional requirement but not necessarily or automatically an e-money license”

Earlier in May, Glosfer, South Korea’s first generation blockchain company had signed an agreement with Coinvil to establish cryptocurrency exchange in the Philippines. Bitcoin is currently trading above the $6,000 level with $114.56 billion in total market capitalization, according to its website.