BSP: “The public should exercise caution, conduct their own due diligence, and always be mindful of the risks prior to engaging with VA-related activities.”
BSP — The Bangko Sentral ng Pilipinas recently warned the public against unregistered and foreign virtual assets.
The central bank has issued a strong public warning against unregistered and foreign VASPs (virtual asset service providers), which are high risks and could lead to huge financial losses because of price swings.
On Wednesday, the central bank clarified that even registered VASPs in the Philippines wouldn’t be able to guarantee protection since virtual assets are high-risk activities due to virtual asset fluctuations.
The BSP said that scams and frauds have become more rampant leading to a “large portion of VA-based crimes” lately, based on recent data cited by the central bank.
“The public should exercise caution, conduct their own due diligence, and always be mindful of the risks prior to engaging with VA-related activities,” the central bank warned.
In addition, the central bank has been strongly urging the public not to deal with unregistered virtual asset service providers and VASPs domiciled abroad.
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BSP added that VASPs that are based abroad may “present additional challenge on enforcing legal recourse and consumer protection” and may “redress mechanisms for local customers”.
The public is also advised to verify whether a virtual asset service provider they are dealing with is regulated and supervised by the central bank.
Manila Bulletin reported that the list of BSP-registered virtual asset service providers are available in the central bank’s website. The BSP is supervising 19 VASPs as of end-June.
The central bank has temporarily closed for 3 years the regular application window for new VASP licenses in order to maintain the stability and integrity of the financial system and to strengthen consumer confidence in the digital ecosystem.
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