The science of cryptocurrency is considered revolutionary with its blockchain technology that assures not only security but also anonymity.
It is a completely new idea that can be compared to other mind-blowing technologies that became widespread like automobiles, mobile phones and the World Wide Web.
Cryptocurrency is a virtual currency created by Satoshi Nakamoto. It was later developed and adopted by other cryptocurrency companies that operate much like Bitcoin. A person can buy products and services using it and it can also be traded in the stock market. What’s really interesting here is the way it can make its users secure by the use of cryptography or the art of making codes to conceal a message. It’s why its’ called cryptocurrency.
Blockchain is the technology under cryptocurrencies like Bitcoin, Etherium and many others. The system is completely decentralized which was thought to be impossible in the past years. It uses the peer-to-peer network of people that keeps it on track and updated. While the cryptocurrencies themselves cannot be centralized to one bank or several banks, the blockchain, on the other hand, can be regulated by country.
Governments have different approaches to the blockchain technology. There are some that have chosen to wait and see what will happen in the future, deciding not to regulate it as it is not seen as a financial threat yet. There are some that banned cryptocurrency entirely. Others have embraced it and made detailed rules and recommendations to regulate it.
The situation in the Philippines is working to pave its way for the information to be circulated.
The Blockchain Association of the Philippines was formed to spread understanding and eventual adoption of the blockchain technology among the Filipino entrepreneurs, fintech professionals, and the Filipino community. It is also registered in countries like Singapore and a handful of Philippine-based companies such as Salarium and Loyalcoin rolled out ICOs or Initial Coin Offerings.
The Circular no. 944 or more commonly known as (Bangko Sentral ng Pilipinas) BSP’s Guidelines for Virtual Currency Exchange, which serves as the rules and regulations that govern operations of VC exchanges in the Philippines. The BSP has received 30 applicants that seek approval to operate as a virtual currency exchange in the country. Only two have been granted licenses as of 2018, Betru.Inc that operates Coins.ph and Rebittance Inc. of SCI Ventures which operates Rebit.ph.
The Philippines is treading in the dark with cryptocurrency but one major concept that Philippine regulators should look into is Switzerland, a country that is among the pioneers in finance.
Switzerland ranked first in a list of Top 10 European countries for starting a blockchain company according to a study released by the blockchain conference, Blockshow Europe 2018. 48 countries related to ICOs, cryptocurrency as a payment service, and taxation framework for cryptocurrencies were examined in the study.
The country has been revered for its strength in financial services, global network and community, talent, and flexible and competitive taxation program for blockchain. This advancement allowed the cryptocurrency industry to thrive in the said country. The Crypto Valley in Zug has attracted blockchain-based companies because of the low corporate tax and business and blockchain-friendly policies. It is now the home for these companies.
To fully understand this industry, a speaker from Switzerland was invited by Justo Aboitiz Ortiz, the President of the Blockchain Association of the Philippines and the chairman of Unionbank to give a talk.
Cecilia Mueller-Chen is a member of Crypto Valley Association’s Regulatory and Policy working group and the Lead Author of the Crypto Valley Association’s Code of Conduct. Her current responsibilities include assessing regulations governing ICOs around the world. She’s one of the global forerunners in compliance and regulation when it comes to blockchain and the crypto economy.
There, she talked about how the regulations involving cryptocurrency in Switzerland are liberal and principle-based where the regulations are more like boundaries rather than pathways. The blockchain technology is moving faster than governments can make and enforce regulations. Mueller-Chen believes that there should be a distinction between what is acceptable and what is not but the growth of this industry should not be hindered. The government or regulators and the industry should not oppose each other but rather they much be partners in order to achieve harmony and progress.
