Bitcoin Regulations by The Central Bank of The Philippines
As Bitcoin becomes accepted in more and more nations around the world,
the regulatory risk increases every day.
What was legal one day may be illegal the next,
and governments love the ability to control and track their citizens.
The central bank of the Philippines has begun an initiative to exert more control over Bitcoin exchanges and how they do business.
The central bank of the Philippines, or the BSP, has created a new set of guidelines for the use of digital currencies in the country under what is known as BSP Circular No. 944. Under this new edict, the central bank has reaffirmed itself as the sole authority that can offer legal tender currency through official bank notes. They also are going to require Bitcoin businesses, like exchanges, to officially register with the BSP.
The best way to exert control over the users of Bitcoin is to hit them when they exchange their digital currency into paper currency. The BSP wants to limit the ability to launder “black money,” or ill-gotten, undeclared funds.
In effect, the BSP will be treating Bitcoin and its related businesses like a true financial services company, similar to credit cards, check cashing and so on, effectively validating the digital industry through these new regulations.
Local Bitcoin business experts in the area said the BSP’s new set of rules formally welcome virtual currency in the local financial system, and the regulatory clarity is appreciated.
BSP offered their first public notice advising against the use of digital currency in the aftermath of the collapse of Mt. Gox Bitcoin exchange back in March of 2014. Apparently, with more people using the currency since, these new, more aggressive measures were deemed necessary.
Will be interesting to see how aggressive their policing of this will be.
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