The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, is set to introduce a new virtual asset reporting portal on January 1, 2025, as part of a broader effort to tighten oversight of virtual asset service providers (VASPs). The BSP released a draft circular over the weekend outlining new reporting requirements designed to improve data collection, enhance transparency, and address gaps in information related to virtual assets and VASPs.
The proposed regulations will require VASPs to submit a total of 13 reports at various intervals to ensure more comprehensive oversight. These reports will cover key areas such as transaction volumes, values, assets held in custody, and the demographic details of account holders.
New Reporting Requirements for VASPs
Under the proposed rules, VASPs will be required to submit two monthly reports detailing transaction volumes, values, and the total assets they hold in custody. In addition, quarterly reports will be required, with VASPs submitting seven different types of information, including data on their operating offices, websites, and account holder demographics. Three semi-annual reports will be required, along with audited financial statements on an annual basis.
Transition to New Reporting Portal in 2025
VASPs will initially submit their reports through existing channels until the end of the second quarter of 2025. Starting July 1, 2025, they will be required to transition fully to the new reporting portal for all submissions unless otherwise directed by the BSP.
The BSP has warned that failure to comply with these new reporting requirements will result in enforcement actions. VASPs have until December 13, 2024, to submit any feedback or concerns regarding the proposed changes.
BSP Cautions the Public on Unregistered VASPs
In addition to the new reporting requirements, the BSP has issued a public warning about the risks of dealing with unregistered VASPs, particularly those based overseas. Currently, only 14 VASPs are registered with the BSP, with just seven actively operating in the country. These include well-known players like Maya Philippines, the Philippine Digital Asset Exchange (PDAX), Betur Inc. (COINS PH), Bloomsolutions, Direct Agent 5 (SurgePay Mobile App), Moneybees Forex, and TopJuan Technologies Corp.
Earlier this year, the BSP also issued a warning regarding crypto scams, urging the public to remain vigilant, particularly against fraudulent schemes promoted on social media. The central bank clarified that its governor, Eli Remolona Jr., does not endorse or support any specific crypto projects, including high-risk schemes like the “Tesler Code.”
With the new reporting portal, the BSP aims to improve regulatory oversight of the cryptocurrency industry, increase transparency, and reduce the risk of fraud and illicit activity within the virtual asset space.
