27 Jan 2021
The Philippines central bank, Bangko Sentral ng Pilipinas (BSP), has released new guidelines for virtual asset service providers (VASPs) in a bid to prevent money laundering.
The BSP said in a document issued Jan. 25, that under the framework, VASPs will need to apply for a license, a “certificate of authority,” in order to operate as a money sending business.
They will also need to align with the central banks existing rules for financial service providers in areas such as liquidity and operational risk, IT risk, internal controls, consumer protection and anti-money laundering.
VASPs will now need a minimum capital requirement of 50 million Philippine pesos (just over $1 million) if they provide custody services, or a lesser amount of 10 million pesos ($208,000) if not.
The central bank’s governor’s office said in a policy statement that it supports “an environment that encourages financial innovation while safeguarding the integrity and stability of the financial system.”
By Tanzeel Akhtar, Coin Desk, 26 January 2021
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