IMF Assisting Philippines Become Notable Cryptocurrency Market
The International Monetary Fund (IMF) is assisting the Philippines with technicalities involved in cryptocurrency assets. The IMF sees the possibility of the Philippines becoming a substantial cryptocurrency market and has offeredthe country’s central bank (BSP) with recommendations for its cryptocurrency regulation, as well as quarterly data collection from approved cryptocurrency exchanges.
A few days ago, the IMF released a report on the country. The technical assistance report contains thirty-four pages and it includes suggestions on the basis of an assessment carried out by the staff of IMF last year. According to the report, the content is technical advice from the IMF to the Philippine government as it requested technical assistance.
The IMF is likewise assisting BSP in some areas towards the improvement of monetary quality and financial statistics compiled by BSP. One of them is delivery of a lecture on the treatment of cryptocurrency assets in macroeconomic statistics. The IMF asserts that the country could be a notable market for cryptocurrency assets due to the increasing number of cryptocurrency exchanges approved by the central bank.
In 2017, the central bank issued Circular No. 944 to adopt an official cryptocurrency regulatory framework. It requires the registration of businesses involved in crypto exchange for fiat money in the country. They are to register with BSP as remittance and transfer firms.
The latest list of BSP contains thirteen approved cryptocurrency exchanges across the country. As stated in the IMF report, the mission motivates the central bank to explore the likelihood of data collection on these exchanges to do macroeconomic analysis, especially global financial flows utilizing cryptocurrency assets.
Part of the suggestion is to request accumulated data quarterly, on gross transactions, showing where the funds came from and where they went. Likewise, it also suggests the breaking down of the parties involved in the transactions between individuals, financial corporations, and non financial corporations.
The points suggested by the IMF are the same as those of the Financial Action Task Force (FATF). The FATF is a body that deals with the development of policies to counter money laundering. Six months ago, it issued a guide on a risk-based approach to virtual assets and related service providers.
It encourages nations and other entities to meet the FATF standards as well as national legal requirements. It recommends the identification of a customer and, where appropriate, the beneficial owner of a customer and verification of the identity of a customer based on risk and reliable and independent information, data, or documentation to at least the extent required by the applicable legal or regulatory framework.