Regulatory Clarification: Operating Without Proper Licenses
Financial authorities in the Philippines have issued a significant clarification regarding operational licenses in the cryptocurrency sector. Official information confirms that a major global digital asset exchange and its local Philippine partner firm currently lack the formal authorization required to offer virtual asset services in the country.
Limitations of Regulatory Sandbox Participation
The central bank specifically emphasized that a company's participation in the regulatory sandbox program overseen by the Securities and Exchange Commission does not equate to approval from the monetary authority. While the sandbox allows for testing innovative services in a controlled environment, offering formal services to the public ultimately requires securing a separate VASP license. These are two distinct and mandatory regulatory requirements.
Ongoing Inter-Agency Coordination
The Bangko Sentral ng Pilipinas and the SEC are now engaged in close communication and coordination regarding the partnership model and compliance status of the involved entities. The SEC had previously amended its testing terms, refining the designated role of the partner firm. This inter-agency collaboration signals the Philippines' commitment to developing a clearer and more cautious regulatory framework for crypto assets, aiming to protect investors and ensure financial stability.
- Key Finding: The concerned entities do not hold a BSP-issued VASP license.
- Regulatory Note: Sandbox testing is not a substitute for a formal license application.
- Current Status: The two main financial regulators are coordinating on the matter.