stop shot for crypto – The Central Bank of the Philippines makes a decision that will prevent cryptocurrency exchanges and other companies in the sector, to operate legally in the country for the next three years. This confirms his distrust of crypto assets.
Licenses Suspended for Crypto Businesses in the Philippines:
The Philippines is closing its doors to crypto businesses. According to the announcement of the central bank of the country, the issuance of new licenses for the provision of virtual property services (VASP) is suspended for three yearsstarting September 1.
This decision, made in accordance with resolution no. 1141 of the Monetary Board of August 4, could, however, be reviewed, depending on market developments.
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Return to sender for incomplete files on the due date
Applications for a crypto license that have completed or passed the second stage of the process by August 31st will be processed and evaluated. The regulator will require documents and full information regarding the third stage requirements.
Applications deemed incomplete by this date will be returned to the companies in question. They will therefore be “closed”.
Crypto companies with a stable rating that survive restrictions
The Central Bank justifies this restrictive provision. It causes the need to find fair balance between “promoting innovation in the financial sector” through virtual asset providers and maintaining financial stability at risk levels that remain under control.
The regulator apparently wants to remain consistent, by providing an exception for financial institutions under its supervision. These companies can continue to apply for a VASP license. Indeed, if they did rated as least “stable” in their SAFr rating – for Supervisory assessment framework, they will be the exception to the rule. To issue a license, the central bank will assess the risk management systems of these applicants.
This decision will definitely complicate the business of many crypto companies, including Binance. The crypto platform was attacked two times one at a time think tank Filipinos accuse cryptocurrency exchange to operate in the country, without the necessary legal authorizations.
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