BSP studying applications from players eyeing to set up virtual currency exchanges

THE BANGKO SENTRAL ng Pilipinas ( BSP) is evaluating 12 applications from new players looking to set up virtual currency exchanges in the country amid rapidly growing interest in bitcoin and similar platforms.

BSP Deputy Director Melchor T. Plabasan said applications from 12 financial technology (fintech) firms are being evaluated by the central bank, which would add to two players already approved by the regulator this year.

The new applications come from “locally incorporated” fintech players which are majority owned by foreigners, Mr. Plabasan said, most of which are using bitcoin as their currency. Eight are completing documentary requirements, while four have finished presenting their business models to the regulator.

“We first have to ensure that the activity or service being offered by this particular company should be regulated by the BSP,” Mr. Plabasan, who also heads the BSP’s core information technology specialist group, said during a media briefing yesterday.

“As long as the applicants can substantially complete all the requirements, we can [approve] probably within the first or second quarter of next year.”

Bitcoin is a form of easily transferable electronic currency used for paying goods sold through the Internet, which sometimes stands as an investment for its holders given its fluctuating valuation. It is a form of digital money that is not issued or guaranteed by a central bank, and can be sent or received by anonymous users internationally.

Under the law, the BSP is the sole authority that can issue money in the Philippines through bank notes and coins used as legal tender for day-today transactions.

Any person can buy and sell bitcoins, which may be traded by tapping the services of bitcoin dealers or brokers who look for good deals for a bitcoin investor; going to bitcoin exchanges — an establishment that allows bitcoin holders to directly buy and sell the virtual currency; participate in a “mining pool” — a group of individuals with top-of-the-line computers that can solve complex math problems to unlock codes in exchange for a bitcoin; or look for someone to trade cash or goods for bitcoins.

Currently, two virtual currency exchanges are registered with the BSP: Rebittance, Inc. and Betur, Inc. more popularly known as Coins.ph.