The Central Bank of the Philippines has urged the public not to work with virtual asset service providers (VASPs) that are either not registered in the country or located overseas.
According to the Central Bank of the Philippines (BSP), in addition to the risk associated with crypto asset price volatility, overseas-based VASPs may pose additional legal and redress challenges for local clients.
Deals in virtual assets are considered high-risk activities that can lead to huge financial losses due to price fluctuations. The Central Bank, which is the main regulator of the crypto sector in the Philippines, has warned that the government does not guarantee protection against financial losses associated with cryptocurrency price fluctuations.
“The public should exercise caution and due diligence and always be aware of the risks before engaging in activities related to virtual assets,” the regulator said.
According to the website of the Central Bank, as of June, only 19 companies were registered in the Philippines. The BSP urged the public to immediately report illegal activities carried out with cryptocurrencies or crypto-currency service providers to the Central Bank.
Earlier, BSP said it was imposing a three-year moratorium on accepting and reviewing new applications for a Virtual Asset Service Provider (VASP) license from September 1.