The nature of bitcoin has attracted different countries in recent times to consider its legalization in the late economic system. Recently, it was Iran which weighed it’s positive and negative to accept it as an option for their economic breakthrough following the sanctions imposed against them by the US government.
Today, the latest country to join the tall list of Bitcoin-friendly countries is the Philippines. Philippines has considered the use of Bitcoin as an option to tighten their security sector. Bitcoin, being anonymous has several important places to stand in the recent economic development. The Philippines has faced serious security loopholes for some time now, and just like most of the countries, they are expecting bitcoin to play the magic for them.
The Regulation Was Inspired by its Potential Security and its Popularity
In the beginning of the year, Philippines issued regulations that sought to help and expand the cryptocurrency sector in the country for its full benefit. They now aim to place much emphasis on Bitcoin to regulate its use.
According to Emilio Aquino, the country’s Securities and Exchange Commission (SEC) commissioner, the reason to expand digital currency use under new regulation is purely security reasons. “The direction is for us to consider this so-called virtual currencies offerings as possible securities in which case we will apply the Securities Regulation Code,” said Aquino.
The popularity of the digital currencies such as Bitcoin, Etherium, and ICO also inspired the government to consider regulating it to support its users. Aquino said that: “We have seen particularly in the social media sites that there are offers of initial coin offerings, most popular of which, of course [are] bitcoin and Ethereum…but [there are] new ones which may be considered as securities.”
The Need to Regulate Digital Currencies was also inspired by Regulations of Other countries
Many countries have witnessed positive growth after their legalization of the Bitcoin, and this greatly inspired the Country’s Security and Commission to join them in this act. They took cues from countries such as the United States of America, Malaysia, Thailand and Hong Kong to ensure success in their decision.
At least eight States in the USA considered the working on bills to regulate Bitcoin and the blockchain technology in 2017. The Blockchain technology keeps growing backed by governments. It has been reported that some of these states have already passed it into law. The USA is working to enable Bitcoin to become recognized as the traditional asset in the country.
The congressional resolution predicted that with good protection in place, Bitcoin has the potential to change the manner of trust and security in online transactions. This has come a long way to persuade countries across the world to consider its legalization.
The Philippines has noted and outlined strategies to offset the weakness experienced by these countries so far, to avoid future breakdown. The currency also has the potential to provide revenue to the country since it has several fans in the Philippines and beyond.
Discussion with the Central Bank to Approve the Cryptocurrency
SEC has consulted all possible agencies and relevant parties for the regulations of the digital currency. The commissioner for SEC revealed that a discussion has gone on between the commission and the Bangko Sentral ng Pilipinas (BSP) for the possible approval of the cryptocurrency regulations and the issue of license for its operation.
He revealed that the regulation has started to operate as around six cryptocurrency exchangers have registered. Their operation is currently limited to inward remittance from overseas Philippine workers.
It has become a problem for some countries as the central bank has insisted not to approve the regulation of virtual currencies for several reasons. However, Nestor Espenilla Jr, the BSP governor has said that the central bank has an open mind concerning the technological currencies and how well they can transform the country in different ways.
The central bank’s deputy director, Melchor Plabasan, showed his support for the digital currency a month ago. He explained that Bitcoin has a monetary and investment instruments. He admitted that there is a level of risk attached to its use, but he assured that its risks can be managed.
More countries are expected to join the legalization of the Bitcoin as it keeps growing in popularity and use.
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