The Central Bank of the Philippines recently announced that they wouldn’t be taking crypto license applications starting next month. This break will be for the next 3 years, suggesting that new crypto platforms wouldn’t be allowed to enter the Philippines. This move by the Central Bank could be viewed positively if we consider the risks involved with new crypto exchanges coming to a country. On the other hand, it also means the existing platforms could monopolize the exchange market in the Philippines.
No more crypto applications from next month
If exchanges or platforms want to operate in the Philippines, they gotta apply for crypto licenses this month itself. The Central Bank has clearly announced a break period of 3 years in accepting new license requests to balance risk and innovation in this new sector. Not accepting new license requests will also give the regulators some breathing room to focus on regulating crypto and brings laws that will help the crypto industry.
The Central Bank has also stated that the license applications are subjected to open depending on the market conditions after 3 years. There is no guarantee that they will start accepting new applications. Now, there is a question. Will this break apply to all crypto exchanges or only foreign platforms that want to offer their services in the country?
This is because if the domestic platforms aren’t allowed as well, then there won’t be any growth of the crypto sector in the country per see. That is not a healthy thing and will slow down innovation.
Current state of crypto in the Philippines
There are around 19 virtual asset service providers or crypto exchanges and platforms in the country right now. So, it is not that there is a lack of options or choices among the citizens in the country. And companies that are keen on offering their services in the country also have time to do so by the end of this month. It is clear that the Philippines is taking a controlled approach toward crypto. It is not bearish or bullish; they are treating it with caution.
What are your thoughts as the Philippines Central Bank announces that they won’t be taking crypto license applications starting next month? And do you think they will resume it sooner than we think? Let us know in the comments below. And, if you found our content informative, do share it with your friends.
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