Guidelines for Virtual Currency (VC) Exchanges

February 6, 2017BSP CIRCULAR NO. 944-17SUBJECT : Guidelines for Virtual Currency (VC) Exchanges The Monetary Board, in its Resolution No. 121 dated 19 January 2017, approved the following rules and regulations governing operations of VC exchanges in the Philippines, which shall be incorporated as Section 4512N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).SECTION 1. Section 4512N shall read as follows:"Section 4512N. Guidelines for Virtual Currency Exchanges; Statement of Policy. —It is the policy of the Bangko Sentral to provide an environment that encourages financial innovation while at the same time ensure that the Philippines shall not be used for money laundering (ML) or terrorist financing (TF) activities and that the financial system and financial consumers are adequately protected. Thus, the Bangko Sentral recognizes that Virtual Currency (VC) systems have the potential to revolutionize delivery of financial services, particularly for payments and remittance, in view of their ability to provide faster and more economical transfer of funds, both domestic and international, and may further support financial inclusion. These benefits, however, should be considered...