BSP warns public against unauthorized crypto service providers

The Bangko Sentral ng Pilipinas (BSP) has renewed its warning to Filipinos against transacting with unauthorized virtual asset service providers (VASPs), citing risks of fraud, lost funds, and the absence of legal recourse for users.

VASPs are entities that facilitate virtual asset activities, including the exchange, trading, transfer, safekeeping, and use of cryptocurrencies for payments.

In its public advisory, the BSP flagged three principal risks tied to dealing with unlicensed platforms.

First, users face possible loss of funds or assets due to fraud, scams, and operational failures, including security breaches, cyber attacks, and bankruptcy.

Second, customers of unauthorized VASPs have little to no legal recourse or consumer assistance in cases of market misconduct.

The central bank cited examples such as poor service quality, misinformation, deceptive advertising, mishandling of private keys, cyber incidents, and data privacy breaches.

Third, users may suddenly lose access to their holdings once government regulators move against unlicensed operators.

The BSP said it will continue working with the Securities and Exchange Commission, the National Telecommunications Commission, and other government agencies, alongside the private sector, to conduct market surveillance and restrict Filipino access to unauthorized VASP platforms.

The regulator also urged consumers to safeguard their personal information, practice cyber hygiene, and transact only with duly licensed institutions.

The BSP maintains an updated list of authorized VASPs, accessible at

https://www.bsp.gov.ph/Lists/Directories/Attachments/19/VASP.pdf

Reference materials on virtual assets and VASPs are available through the BSP’s primer on virtual currencies (

https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/VC.pdf) and its frequently asked questions document on VASPs (https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/FAQs_VASP.pdf).

Complaints involving products or services of BSP-authorized VASPs may be coursed through the BSP Online Buddy (BOB) via webchat at

https://www.bsp.gov.ph or through Messenger on the BSP’s official Facebook account at https://www.m.me/BangkoSentralngPilipinas/.

Reports about entities operating as VASPs without BSP authority may be sent to BSPMail@bsp.gov.ph, with TRISD@bsp.gov.ph copy furnished.

Virtual assets remain a fast-growing but lightly regulated segment of the Philippine financial system, with the BSP licensing only a limited number of VASPs under its 2021 framework as it weighs consumer protection against innovation in digital finance.