Public Alert Against Unlicensed Crypto Service Providers
Investors have been cautioned by the Philippine central bank, which serves as the industry’s key regulator, to avoid dealing with unlicensed and overseas crypto service providers. The agency warned that they may offer extra issues with regard to implementing legal consequences, consumer protection, and redress methods for local clients, among others. Bangko Sentral ng Pilipinas (BSP), the country’s central bank, issued a public alert on Tuesday against unlicensed and overseas cryptocurrency service providers. The central bank of the Philippines serves as the industry’s main regulator.
The notification reads that the public is strongly advised not to do business with virtual asset service providers (VASPs) that are either unregistered or based overseas, according to the Bangko Sentral ng Pilipinas (Bangko Sentral). There were 19 VASPs registered as of June, according to the central bank’s website.
The Government Cannot Guarantee Protection
The central bank stated that VASPs that are situated overseas may provide extra issues in enforcing legal consequences and consumer protection and redress procedures for local clients, among others in addition to the danger from price volatility connected with virtual assets (VAs).
Bangko Sentral stressed that the dealings with VAs are often regarded as high-risk transactions that might cause significant financial losses as a result of price fluctuations. The government cannot guarantee protection against financial losses brought on by swings in cryptocurrency prices, the central bank added in a warning. Prior to engaging in VA-related activities, the public should use prudence, do their own research, and constantly be aware of the hazards, the regulator warned.
The public has been advised by Bangko Sentral ng Pilipinas to notify the central bank right away of any illegal actions made possible by cryptocurrencies and crypto service providers. The central bank said last week that beginning September 1st, new VASP license applications will no longer be accepted for three years. In order to strike a balance between encouraging innovation in the financial industry and ensuring that related risks stay within acceptable limits, the regulator said what it was trying to achieve.
Source: https://www.thecoinrepublic.com/2022/08/21/philippine-regulator-issues-a-public-alert-against-foreign-crypto-service-providers/