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BSP to virtual currency users: Deal with BSP-registered VCEs only

With the rising popularity of Virtual Currencies, Bangko Sentral ng Pilipinas urges the public to ensure their safety by transacting with registered Virtual Currency Exchanges.

Bangko Sentral ng Pilipinas (BSP) issued an advisory effectively reminding Virtual Currency (VC) users to deal with BSP-registered Virtual Currency Exchanges (VCEs) only.

This comes in the heels of a growing number of Philippine bank and non-bank institutions that are actively exploring the digital financial services market.

The BSP advisory expressly states that operators of ATMs that allow purchase or exchange of VCs must be registered with the BSP as VCEs.

VC users utilize VCEs to convert cryptocurrencies to fiat currencies and vice versa.

Cryptocurrencies are essentially digital currencies such as Bitcoin and Ethereum.

Fiat currencies, meanwhile, are government-minted currencies such as the US dollar and the Philippine peso.

As BSP-registered VCEs, VC users are assured that they are transacting with companies that have complied with Central Bank regulations on anti-money laundering, anti-terrorist financing, technology and risk management, and customer protection.

Apart from dealing with BSP-recognized VCEs only, the Central Bank also recommends that VC users should maintain just enough VCs as needed by their respective transactions.

BSP maintains its non-endorsement of any type of VC or cryptocurrency as legal tender, store of value, or investment endorsement.

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