BSP Warns Filipinos Against Unlicensed Crypto Platforms
The Bangko Sentral ng Pilipinas warned Filipinos on May 11 that using unauthorized virtual asset service providers exposes them to fraud, cyberattacks, and potential fund loss with no legal recourse.
Key Takeaway
BSP is tightening enforcement against unlicensed crypto platforms to protect Filipino users from fraud and fund losses.
Bangko Sentral ng Pilipinas published an advisory on May 11 warning the public against using unauthorized virtual asset service providers.
The central bank listed risks including fraud, cyberattacks, potential loss of funds, scams, operational failures, possible bankruptcy of service providers, limited legal protection for users, limited access to consumer assistance mechanisms, misleading advertisements, poor service, mishandling of private keys, data privacy issues, and market misconduct.
BSP said it will continue working with the Securities and Exchange Commission, National Telecommunications Commission, and other government agencies to conduct market surveillance and restrict Filipino access to unauthorized VASP platforms. The private sector is also part of the enforcement effort.
The central bank advised Filipinos to safeguard personal information, observe proper cyber hygiene practices, and transact only with BSP-authorized institutions. Users can access the official list of BSP-authorized VASPs on the central bank's website. BSP also recommends reviewing its primers and FAQs on virtual assets before making any transactions.
Filipinos can report unauthorized operators through BSP Online Buddy via the BSP official website or Messenger, or through BSP's official email channels. BSP Deputy Governor Elmore Capule previously stated that the central bank remains committed to working with the Cybercrime Investigation and Coordinating Center, National Bureau of Investigation, and SEC to protect the Filipino public from those who seek to exploit it.
🇵🇭 Filipino Impact
Only PDAX and Coins.ph hold BSP licenses to operate as Virtual Asset Service Providers in the Philippines. Filipinos using unlicensed platforms like Binance — which SEC PH flagged in 2023 — have no legal recourse if funds are lost or stolen. BSP maintains a Consumer Assistance Mechanism for disputes, but it only covers BSP-supervised institutions.
This article was written based on reporting from Sunstar.
