Philippine crypto platform bullish on growth

Local cryptocurrency platform PDAX is bullish on the growth of its business as it sees an opportunity in the wake of plans by the Securities and Exchange Commission to have  digital currency exchange giant Binance blocked in the Philippines.

In November, the Securities and Exchange Commission (SEC) bared its plan to have Binance blocked in the Philippines as it warned the public against using the unregistered platform, which is not authorized to sell or offer securities.

“Now that Binance is being banned, there are a lot of users wondering where they can go and the best option for them is to go to a licensed exchange like PDAX,” PDAX CEO Nichel Gaba told reporters in an interview.

“Our strategy as a company is to really focus on being the best alternative,” he added.

Gaba said all licensed virtual asset service providers (VASP) are processing $2 billion to $3 billion worth of transactions.

“I think next year it is likely gonna double and that figure doesn’t even include activities in unregulated exchanges,” he said.

As to the country’s regulatory landscape for cryptocurrency, the PDAX CEO said the Bangko Sentral ng Pilipinas remains supportive of all kinds of financial innovation.

“This year, they really improved their supervisory capabilities... The requirements are much more complex than it was,” Gaba said.

Republic Act No. 11211 or the New Central Bank Act puts crypto asset businesses under BSP’s supervision.

Likewise, amendments to the virtual currency exchange policy via BSP Circular 1108 further expanded the definition and scope of virtual currencies, risk disclosure, capital requirements following a risk-based approach, and internal controls.

PDAX had earlier said that cryptocurrency is gaining traction in the Philippines and is on its way to becoming mainstream.  —NB, GMA Integrated News