The Bangko Sentral ng Pilipinas (BSP) has warned the public against dealing with unauthorized virtual asset service providers (VASPs), cautioning that transactions involving unlicensed cryptocurrency platforms expose consumers to serious financial and cybersecurity risks.
VASPs are entities that facilitate cryptocurrency-related activities such as trading, exchange, transfer, safekeeping, and digital asset payments.
According to the BSP, individuals who transact with unregistered or unauthorized crypto platforms risk losing their funds due to fraud, scams, operational failures, hacking incidents, or even company bankruptcy.
The central bank also warned that consumers using these platforms may have little to no legal protection if problems arise, including deceptive marketing practices, mishandling of personal information, poor customer service, or improper management of digital wallets and private keys.
Authorities further noted that users could completely lose access to their assets if government agencies shut down illegal operations through enforcement actions.
To combat the growing risks linked to unauthorized crypto activities, the BSP said it is coordinating with the Securities and Exchange Commission, the National Telecommunications Commission, and other public and private sector partners to strengthen market monitoring and restrict access to unlicensed platforms operating in the country.
The BSP also urged financial consumers to observe strict cybersecurity practices, safeguard their personal data, and ensure that they only transact with financial institutions and virtual asset providers that are properly licensed and regulated.