Philippines’ central bank (BSP) has reportedly put a new licensing regime for local crypto asset entities, with a wider scope, in effect, in a bid to stay on par with the surface of clear-cut crypto laws in the SEA region. 

Specifically, every entity functioning as crypto financial service companies in the Philippines are reportedly required to obtain operating licenses from the BSP.

Therefore, it is now mandatory for exchanges doing business in crypto-to-crypto trading pairs and custody platforms, to secure approval from the central bank.

The new crypto regime with a widened scope further includes derivatives platforms.

Every crypto companies in the nation also reportedly need to stay in compliance with international financial best practices, including Anti-Money Laundering and Countering the Financing of Terrorism.

Consequently, crypto transfers which exceed a particularly set benchmark will reportedly have to run identification, for both the originator and beneficiary sides.

Per Benjamin Diokno, governor of the BSP, the widened regulatory regime is needed, as an effort to stay relevant with the development progress of the crypto sphere, throughout the past three years. 

In 2017, the BSP reportedly came up with regulations for exchanges associated with fiat-crypto trading pairs.

The new regulations are reportedly expected to cancel out any potential loopholes throughout the crypto financial services infrastructure, and the central bank is dedicated to establishing a balance between its promoting financial innovation, and getting its oversight responsibilities done.