Union Bank of the Philippines, a banking giant in the Philippines has just taken cryptocurrency adoption to the next level after launching a cryptocurrency Automated Teller Machine (ATM)-the first of its kind in the country.
According to a local news outlet dubbed philstar (The Philippine Star), the teller machine will serve to ensure Philippines transact their digital currencies with ease without brushing shoulders with the regulators
“In the bank’s continued quest to cater to the evolving needs and tastes of customers, including clients who use virtual currency, the ATM will provide these clients an alternative channel to convert their pesos to virtual currency and vice versa,” part of the statement read.
The machine, a two-way teller system will enable users to both buy and sell their cryptocurrencies in line with the regulations in place.
Philippine crypto regulations
The Philippine government has been very careful with matters cryptocurrency. Since 2017, when Banko Sentral ng Pilipinas (BSP), Philippines’ Central Bank took the mandate of regulating crypto assets, nothing has been left to chance. Owing to the increased use of these assets in the country and the world at large, the BSP came up with a regulatory framework to guide crypto exchanges “through Circular 944 dated Feb.6 2017.”
The framework requires that crypto exchanges register with the BSP under the category of transfer and remittance companies. In addition, they are required to submit evidence of measures put in place to address the risks that come with virtual currencies including money laundering prevention, consumer protection procedures, terrorist financing prevention along with the technology risk management systems in place.
Significance of the launch
To this end, the Union Bank has affirmed to its users that every progress made so far was a consequence of thorough consultation and approval from the regulator and that the launch was evidence the two entities were reading from the same page.
The launch of these crypto ATMs signifies the first case where a banking giant worked handy with the regulator to “oversee the launch of a crypto ATM.” Hitherto, crypto adoption in the Philippines is far much higher compared to other regions in the space especially due to “lack of viable banking options for a large portion of the local population.” According to experts, replication of such collaboration between commercial banks and their regulators in approval of digital assets in other jurisdictions can be a great booster towards adoption of the asset class as well as growth of the local cryptocurrency sector.
