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The State of Bitcoin in the Philippines

When it comes to Bitcoin and cryptocurrencies, the Philippines is one of those countries that are looking to promote innovation and boost adoption by way of favorable regulations and technological advancements. Recent developments in the Philippines’ Bitcoin scenario clearly indicate that adoption of the digital currency is only going to get better with time.

Let’s take a closer look at what’s fostering Bitcoin adoption in the country and how you can go about buying and spending your digital tokens over there.

The Regulatory Environment

The Philippines’ central bank -- Bangko Sentral ng Pilipinas (BSP) -- requires virtual currency exchanges dealing in the likes of Bitcoin to register with it so that they can operate as a remittance and transfer company. Additionally, cryptocurrency exchanges in the country have to follow guidelines related to the maintenance of records and the submission requirements of the BSP.

In February 2019, the country announced some more regulations regarding crypto-assets dealing with the acquisition of cryptocurrencies like Bitcoin, including both utility and security tokens. The Cagayan Economic Zone Authority (CEZA) is the government-appointed regulator to look after the cryptocurrency space in the Philippines, and it aims to regulate the industry, promote innovation, and safeguard the interest of investors at the same time.

The new regulations, better known as the Digital Asset Token Offering (DATO) regulations, requires initial coin offerings (ICOs) in the country to provide clarity with respect to the issuer, the project, and expert certification. The ICOs will be listed on a special exchange that has been set up by the regulator, and the participants need to partner with accredited custodians and wallet providers.

According to Raul Lambino, the CEO of CEZA, “We aim to provide a clear set of rules and guidelines that will boost innovation while also ensuring proper compliance by actors in the ecosystem. We hope that these set of regulatory innovations will promote blockchain and crypto adoption by institutional investors and the financial system.”

In fact, the Far East country is in the process of constituting a financial technology economic zone. It has already provided licenses to 19 cryptocurrency exchanges to operate in the country, and is partnering with local financial technology companies and other stakeholders so that it can gain insights and keep track of the innovations taking place abroad. This clearly indicates the Philippines government’s favorable stance toward cryptocurrencies.

Buying and Spending Bitcoin in the Philippines

We have already seen that the Philippines’ regulatory authority has awarded licenses to several cryptocurrency exchanges. However, the exchanges differ from each other based on several criteria such as transaction fees, withdrawal limits, payment modes, verification requirements, reputation, and many others.

Choosing an exchange might be a difficult task, which is where our guide to Buy Bitcoin in the Philippines comes in handy. The guide gives potential Bitcoin buyers a bird’s eye view of the several cryptocurrency exchanges operating in the country, with special focus on the pros and cons of each. This makes it easier to choose an exchange based on your requirements.

However, certain exchanges require users to get a cryptocurrency wallet of their own where the Bitcoin purchased is stored. Also, it is advisable to get a separate wallet for security reasons. If you don’t have a Bitcoin wallet, refer to our guide on the Best Bitcoin and Cryptocurrency Wallets to take your pick.

Another way to buy Bitcoin in the Philippines is through automated teller machines (ATMs). One of Philippines’ largest commercial banks – the Union Bank of the Philippines – recently launched the first cryptocurrency ATM in the country. The bank intends to make it easier for users to convert fiat currency into Bitcoin and other cryptocurrencies, and vice versa.

In fact, it is a two-way ATM that allows users to both buy and sell cryptocurrencies. The Union Bank has worked in tandem with the Philippines’ central bank to launch the crypto ATM. However, there’s only one Union Bank crypto ATM on offer now, though the bank intends to roll out more units based on demand.

What’s more, the Philippines is one of the most friendly countries when it comes to spending Bitcoin. In fact, it is practical to live on Bitcoin in the Philippines thanks to the Coins.ph mobile application, which allows users to buy or sell Bitcoin through physical bank locations, bank ATMs, convenience stores, and remittance outlets.

Using the Coins.ph application, Bitcoin users in the Philippines can easily meet their daily expenditures. Not surprisingly, the Philippines is touted as one of the most Bitcoin-friendly countries you can come across, and that won’t be changing in the future thanks to the government’s favorable stance toward cryptocurrencies.