The Philippines is a region quite prone to disruption by the fintech industry. Digital payments and even cryptocurrencies are making some big waves in this country right now. The local central bank has issued its first-ever cryptocurrency exchange licenses. This is a positive development, all things considered. It also shows the central bank wants to work with Bitcoin exchanges moving forward. Other countries can certainly learn a thing or two from The Philippines in this regard.
In most cases, central banks do not see eye-to-eye with cryptocurrency companies. That is not surprising by any means these days. Cryptocurrencies such as Bitcoin and Ethereum are a big threat to central banks as a whole. Over the past few years, these banks have successfully ignored cryptocurrency as a whole. That is no longer a viable option, though, as disruption will occur one way or another. The central bank of the Philippines has realized this some time ago. As a result, they are actively working together with Bitcoin exchanges in the country.
A Positive Central Bank Development in the Philippines
More specifically, the central bank has issued licenses for two of these companies. This is a major victory for cryptocurrency enthusiasts in the Philippines. After all, it is one of the few regions showing some love for cryptocurrency-related companies. Although not every approves the idea of regulating such exchanges, it seems to be a necessary step at this point in time. After all, regulatory approval makes cryptocurrencies appear more legitimate as a whole. That in itself is never a bad outcome, considering this industry has only been around for less than a decade.
Rules for domestic cryptocurrency exchanges were announced in February of 2017. At that time, they wanted to foster the cryptocurrency ecosystem through regulatory measures. There hasn’t been much interest from applicants so far, which is somewhat surprising. Then again, at least two companies have successfully put in their application, by the look of things. The central bank is also proactive about bringing exchanges under its regulatory umbrella moving forward.
With two exchanges being granted a license, Bitcoin has officially been “legalized” in the country. After all, these two companies are now operating within the regulatory framework established by the central bank. It is an intriguing development that can have positive repercussions for the Bitcoin industry in the Philippines. The region is home to multiple remittance-oriented businesses, which will also benefit from this new regulatory situation. It will be interesting to see if other exchanges apply for a license in the future.
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