The Bangko Sentral ng Pilipinas (BSP) has again warned the public against transacting with unauthorized virtual asset service providers (VASPs), saying users risk losing funds and may have limited legal remedies in case of fraud or operational failures.
In a statement issued on May 8, the BSP said VASPs facilitate cryptocurrency-related activities such as exchange, trading, transfers, safekeeping, and payments.
The central bank said dealing with unlicensed VASPs exposes consumers to risks including “loss of funds or assets due to fraud, scams, and operational failures,” such as cyber attacks, security breaches, and bankruptcy.
The BSP also warned of the “lack or absence of legal recourse and consumer assistance mechanisms” in cases involving poor service quality, deceptive advertising, mishandling of private keys, misinformation, cyber incidents, and data privacy concerns.
It added that users of unauthorized platforms could also face restricted access resulting from government enforcement actions against unlawful VASP operations.
The BSP said it will continue coordinating with the Securities and Exchange Commission, National Telecommunications Commission, other government agencies, and the private sector in conducting market surveillance to limit Filipinos’ access to unauthorized crypto platforms.
“The BSP also enjoins financial consumers to protect their personal information, practice cyber hygiene, and transact only with duly licensed institutions,” the central bank said.
