The national stock exchange of the Philippines, the PSE, says cryptocurrency is “an asset class that we cannot ignore anymore.” The stock exchange further says cryptocurrency trading “should be done at the PSE,” given its infrastructure and investor protection safeguards.
PSE President and CEO Ramon Monzon explained that many people are attracted to cryptocurrencies “because of the volatility.” However, he warned that “Instant riches could be instant poverty too.”
According to Monzon, the mounting interest in cryptocurrencies means the Philippines cannot ignore them anymore. The PSE is currently awaiting guidelines from the Philippine Securities and Exchange Commission (SEC), which began seeking comments from banks, investors, and the public in 2019 on whether the country should begin building domestic crypto exchange.
The country’s government has historically been friendly toward digital assets. Though it has been outspoken about not considering the development of a central bank digital currency (CBDC) anytime soon, the Philippine Central Bank has licensed over a dozen crypto exchanges to operate in the country. And many Filipinos have become interested in crypto as a way to make money in the country’s struggling economy.
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has registered 17 cryptocurrency exchange service providers so far.
The central bank established new guidelines for crypto asset service providers in January after seeing “accelerated growth” in the use of cryptocurrencies in the past three years. “It is high time that we broaden the scope of existing regulations in recognition of the evolving nature of this financial innovation and set out commensurate risk management expectations,” the central bank wrote.