The Philippine central bank warns against trading with unauthorized virtual asset service providers

According to BusinessWorld, the Central Bank of the Philippines has warned the public and cryptocurrency users not to trade with unauthorized virtual asset service providers, as this may lead to financial losses due to fraud, security vulnerabilities, and operational failures.

The central bank stated that unauthorized VASPs also pose risks such as lack of legal recourse, absence of consumer assistance mechanisms, poor service quality, false advertising, improper handling of private keys, cybersecurity incidents, and data privacy issues. Additionally, access may be restricted due to government enforcement actions against illegal operations. The Central Bank of the Philippines has committed to continuing cooperation with the Securities and Exchange Commission, the National Telecommunications Commission, and other departments to restrict access for Philippine users to unauthorized VASP platforms, and urges consumers to protect personal information, maintain cybersecurity hygiene, and only trade with licensed institutions.