Manila: The Bangko Sentral ng Pilipinas (BSP) has issued a warning to the public, advising against engaging with unauthorized virtual asset service providers (VASPs). The central bank emphasized that these providers are involved in activities such as the exchange, trading, transfers, safekeeping, and payments related to virtual assets or cryptocurrencies.

According to Philippines News Agency, the BSP highlighted the potential risks associated with dealing with unauthorized VASPs. These include the possibility of losing funds or assets due to fraud, scams, and operational failures. Additionally, there are significant concerns regarding the absence of legal recourse and consumer assistance mechanisms in cases of poor service quality, misinformation, deceptive advertising, mishandling of private keys, cyber incidents, and data privacy issues. There is also the risk of restricted access due to government actions against illegal operations of unlicensed VASPs.

The BSP has stated its commitment to collaborating with the Securities and Exchange Commission, National Telecommunications Commission, and other relevant government bodies, as well as the private sector, to conduct market surveillance. This collaboration aims to limit the access of Filipinos to unauthorized VASP platforms. The central bank also urged financial consumers to safeguard their personal information, maintain cyber hygiene, and conduct transactions only with licensed institutions.

For those seeking to verify authorized VASPs, the public is encouraged to visit the BSP website for a comprehensive list of BSP-authorized service providers.