Philippines Central Bank Approves 2 Cryptocurrency Exchanges

Deputy governor Chuchi G. Fonacier confirmed the approvals. The two new platforms join Coins.ph operator Betur Inc., which the BSP approved in September 2017, and Rebittance Inc., approved the following month. BloomSolutions also operates under the regulator's watch after receiving approval in May 2018.

Twenty-nine additional applications await regulatory review. Fonacier signaled that the BSP is reconsidering its licensing approach. "There are some refinements. This may entail additional requirement but not automatically an EMI license," she said. Applicants no longer face the automatic requirement to obtain electronic money issuer licenses.

Peso trading activity has surged this year. The BSP recorded average monthly conversion volumes of $36.74 million between cryptocurrencies and the peso during the first quarter of 2018. The regulator established its formal framework for crypto exchanges through Circular 944 in February 2017. Rules require exchanges to register as remittance and transfer companies and deploy systems for money laundering and terrorist financing prevention, technology risk management, and consumer safeguards.

In the Philippines' north, the Cagayan Special Economy Zone is betting on becoming a cryptocurrency and blockchain hub. The Cagayan Economic Zone Authority (CEZA) intends to license as many as 25 exchange operators within its borders, which provide tax benefits. Each operator receives multiple sub-licenses covering 20 to 30 traders or brokers and must commit $1 million in investment over two years, according to CEZA administrator and CEO Raul L. Lambino. Lambino also said Philippine residents cannot invest or trade in ICOs.