Philippine Central Bank Tightens Virtual Asset Provider Reporting

Philippine Central Bank Enhances Reporting Requirements for Virtual Asset Service Providers

The Bangko Sentral ng Pilipinas (BSP) is taking significant steps to bolster its oversight of Virtual Asset Service Providers (VASPs) in the Philippines. This initiative aims to enhance data collection and ensure a robust compliance framework within the rapidly evolving digital asset landscape.

New Reporting Portal Launching by January 2025

According to a recent announcement by the BSP reported by Odaily, a draft notice released highlights plans to roll out a new reporting portal for all VASPs, set to launch on January 1, 2025. This portal is expected to streamline the reporting process and improve the overall quality of data collected from VASPs.

Objectives of Enhanced Reporting Requirements

The key objectives behind these enhanced reporting requirements include:

• Addressing data gaps within the current reporting framework.
• Reducing discrepancies in the information submitted by VASPs.
• Enhancing the overall quality of data related to virtual assets and VASPs.

Mandatory Reporting Requirements for VASPs

Under the new guidelines, VASPs will be required to submit a comprehensive total of 13 reports, which will be categorized by varying intervals:

• Monthly Reports: Two detailed reports covering transaction volumes, transaction values, and total assets held under custody.
• Quarterly Reports: Seven reports focusing on data related to operational offices, websites, and account holder statistics.
• Biannual Reports: Three additional reports are required every six months.
• Annual Audited Financial Statements: A full set of audited financial statements must be submitted each year.

During the initial two quarters of 2025, VASPs must continue using existing channels to submit their monetary service business reports. After this transition period, all submissions should migrate to the designated new reporting portal unless directed otherwise by the BSP.

Compliance and Feedback Mechanism

It’s crucial for VASPs to adhere to these new reporting standards. Non-compliance could lead to enforcement actions, as emphasized by the BSP. VASPs are also encouraged to provide their feedback on the proposed reporting changes by December 13, ensuring that the framework aligns with industry needs while promoting compliance and transparency.

Conclusion

As the dynamics within the virtual assets sphere continue to evolve, the BSP’s proactive measures to enhance reporting requirements reflect a commitment to improving data accuracy and regulatory oversight. By implementing these changes, the BSP aims to foster a transparent and compliant virtual asset ecosystem in the Philippines.