BSP tightens rules for locally licenced crypto exchanges
The Bangko Sentral ng Pilipinas (BSP) has issued a draft circular with intentions to tighten rules for locally licenced crypto exchanges.
The circular calls for new reporting and notification requirements for Virtual Asset Service Providers (VASPs) under Section 902-N of the Manual of Regulations for Non-Bank Financial Institutions. These updates are aimed at improving how data is reported and collected.
Under the new rules, BSP will be able to track virtual asset activities better and help minimise risk for the public. These rules are aimed at making the crypto industry more transparent.
New rules
Crypto companies will be subject to tighter rules including regular reporting in the Philippines. They must send BSP reports about their activities monthly, quarterly, semi-annually and annually.
The companies would be required to include the total number and value of crypto transactions and where their customers’ funds are stored as part of their monthly report.
Quarterly reports would be more detailed. They would include information about customers, details of wallets, including balances and types of assets stored. Details like how much money is set aside to cover customers’ crypto funds will also be included in these reports.
Public wallet addresses as well as their balances are to be shared by crypto companies in their quarterly reports. In addition, they would include a summary of the company’s financial position.
Crypto companies would be required to share the use cases for accounts split by resident, non-resident and foreign corporations under their semi-annual reports. Whereas annual reports will be the audited financial statements from BSP-approved external auditors.
The new system would require all companies to submit regulatory reports on BSP’s new online portal starting from January 2025. However, companies can use the current system for the first half of 2025 as they adjust to the newer one.
The new rules are to be implemented 15 days post publishing in the Official Gazette or a major newspaper. Penalties are to follow for companies not complying with the new rules.
