Banking and Finance

BSP Releases Guidelines Regulating Virtual Currencies Exchanges

BSP Releases Guidelines Regulating Virtual Currencies Exchanges

In its resolution dated 19 January 2017, the Monetary Board approved a new set of rules and regulations that would govern the operations of virtual currency exchanges in the country. The guidelines are to be incorporated in §4512N of the Manual of Regulations for Non-Bank Financial Institutions. The guidelines were made in recognition of the potential of virtual currencies in revolutionising the delivery of financial services and the risks that accompany it including consumer protection and the susceptibility to be used in illegal activities. The guidelines define the term a virtual currency, such as BitCoin, as any type of digital […]

Global Bitcoin Regulations

Global Bitcoin Regulations

Given that Bitcoins are entirely electronic, there are several drawbacks to its use. Bitcoins are not backed by anything in the physical world like conventional currencies, so users are at risk to volatility of prices and of losing money easily through online security breaches. An example of this is the website “Mt. Gox”, a leading online exchange platform for bitcoin, which was forced to go offline in 2011 due to a hacking incident where over 60,000 usernames and passwords were stolen.[1] The incident resulted in bitcoin value exchange crashing from USD 17.50 to USD 0.01 per bitcoin. In March 2014, […]

Bitcoin 101

Bitcoin 101

Bitcoin is a fully digital and decentralized “cryptocurrency”. First launched in 2009, it has since become the first cryptocurrency to capture the public imagination.[1] A cryptocurrency has been defined as “[a] digital or virtual currency that uses cryptography for security.”[2] As a digital currency, it is both created and held electronically. Like conventional currency it can be used to facilitate exchanges for goods and services. However, unlike conventional money, it is neither backed by gold or silver nor regulated by any centralized authority. Rather they are mathematically generated by a procedure called “mining” where computers are used to solve mathematical […]

RA 10641: An Act Allowing the Full Entry of Foreign Banks in the Philippines

RA 10641: An Act Allowing the Full Entry of Foreign Banks in the Philippines

In May 1994, with the aim of “[enhancing] the country’s competitiveness in the international market,” Republic Act No. 7721 (“RA 7721”) otherwise known as “An Act Liberalizing the Entry and Scope of Operations of Foreign Banks in the Philippines and for other Purposes” was signed into law. Composed of fifteen sections, RA 7721 provided for the state policy in relation to the entry of foreign banks in the Philippines, the different modes of entry, the guidelines and requirements for the approval of such entry, and the head office guarantee, among other things. This law that was enacted to “create a […]

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