The Bangko Sentral ng Pilipinas (BSP) warned the public on Friday against transacting with unauthorized virtual asset service providers (VASPs), citing heightened risks of fraud, financial losses and limited consumer protection.
The central bank defines VASPs as entities that facilitate cryptocurrency-related activities, including trading, exchange, transfers, safekeeping and payments involving virtual assets.
The BSP said dealing with unlicensed platforms could result in the loss of funds due to scams, fraud or sudden operational failures.
It also warned that consumers using unregulated platforms may have little legal recourse in cases involving poor service, deceptive advertising or the mishandling of private keys.
The central bank further cited risks stemming from possible government enforcement actions against unlawful operations, which could restrict users’ access to platforms and funds. Other threats include misinformation, cyber incidents and data privacy breaches.
To curb the spread of illegal platforms, the BSP said it is intensifying market surveillance in coordination with the Securities and Exchange Commission, the National Telecommunications Commission and other government agencies.
“The BSP will continue working with relevant government agencies, as well as the private sector, to restrict access of Filipinos to unauthorized VASP platforms,” it said.
