Tolentino seeks inquiry on digital currencies

SEN. Francis Tolentino called on the Senate to inquire on the status of regulations by the Bangko Sentral ng Pilipinas (BSP) and other relevant government agencies concerning cryptocurrencies.

In Senate Resolution 129, Tolentino explained that the use of virtual currencies has been rising in the Philippines. The value of virtual currency transactions in the country amounted to $ 390.37 million in 2018, almost double from 2017’s $ 189.18 million.

The senator said while there were benefits in using such currencies, there were also risks such as those concerning security, which could affect the country’s monetary stability and could easily be used for illegal activities such as money laundering.

“In response to these risks, certain countries have found it wise to ban the use of cryptocurrencies in their jurisdictions, including China, Russia and Vietnam,” he said.

Tolentino noted that despite numerous advisories and regulations issued by the BSP, there is still a need to monitor and regulate virtual currencies to mitigate the risks, as there are no existing laws or rules for its regulation.

The senator observed that existing regulations, though commendable, only covers regulation of virtual currency exchanges, which still leaves various aspects of cryptocurrencies still unregulated such as its classification and taxation, among others.

He said there was a need to determine whether legislative action is still required to protect the people from the inherent risks of virtual currencies such as racketeering schemes and other business scams, as well as to determine whether virtual currencies should be considered as legal tender and what their proper classification is, for taxation purposes.

JAVIER JOE ISMAEL