Cryptocurrency is a digital or virtual asset designed to work as a medium of exchange. It uses cryptography to secure its transactions and to control the creation of new units. Cryptocurrencies are decentralized, meaning they are not subject to government or financial institution control.
The first cryptocurrency, Bitcoin, was created in 2009. Since then, numerous other cryptocurrencies have been created. These are often called altcoins, as a play on Bitcoin’s alternative name, Satoshi Nakamoto.
Cryptocurrencies are typically stored in a digital wallet and can be used to purchase goods and services online or can be held as an investment.
Cryptocurrency businesses in the Philippines are subject to the same laws and regulations as other businesses. There is no specific regulation relating to cryptocurrency businesses at this time.
However, the Bangko Sentral ng Pilipinas (BSP) has issued guidelines on virtual currencies. These guidelines do not specifically regulate cryptocurrency businesses, but do provide some guidance on how such businesses should be operated.
Cryptocurrency businesses in the Philippines will need to obtain a business license and register with the BSP. They will also need to comply with anti-money laundering and countering the financing of terrorism (AML/CFT) regulations.
Cryptocurrency businesses should consider the following when starting up in the Philippines:
- Obtain a business license and register with the BSP.
- Comply with AML/CFT regulations.
- Know your customer (KYC) requirements.
- Implement appropriate risk management measures.
- Be aware of the tax implications of your business.