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Key Takeaways: Philippines Guidelines on Virtual Asset Service Providers (VASPs)

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January 28, 2020 — The Bangko Sentral ng Pilipinas (BSP) has updated its virtual currency exchange (VCE) guidelines to make it more inline with the rules and recommendations of the Financial Action Task Force (FATF), a global anti-money laundering body. In this new “Guidelines for Virtual Asset Service Providers,” the BSP said it recognizes virtual assets (VA)’s potential to revolutionize the way the current financial services are being done, providing a faster and cheaper way to transfer funds and support financial inclusion. At the same time, the BSP also said there are risks involved with higher degrees of anonymity, the velocity of transactions, price volatility, and cybersecurity risks.

With that, BSP Circular No. 1108 Series of 2021 or the “Guidelines for Virtual Asset Service Providers” has tightened the existing rules on cryptoassets to safely guard against their possible use for laundering and counter terrorist financing (AML-CFT).

This article highlights our key takeaways from the new BSP guidelines, which it said are based on FATF recommendations and risk management principles. Also, this article is for information purposes only and should not be construed as legal interpretation or advice. Consult with a lawyer if you are planning to register.

Table of Contents.

Updated Definitions

Some terms frequently used by the BSP are changed to be in line with global standards. Virtual currencies are now called Virtual Assets (VAs) and virtual currency exchanges are now Virtual Asset Service Providers (VASPs).

Virtual assets include digital units of exchange that 1) may have a centralized repository or administrator, 2) decentralized with or without an administrator, or 3) are created or obtained by computing or manufacturing effort.

Virtual asset service providers may mean those that facilitate exchange between virtual assets and fiat currencies, exchange between virtual assets, transfer of virtual assets, and custody of these assets. 

Requirements to be a Licensed VASP in the Philippines

The BSP requires the VASP to secure a Certificate of Authority (COA) and must comply with pertinent BSP rules and regulations. They are also considered Money Service Businesses (MSBs).

The minimum paid-up capital is Php 50 million (roughly $1 million) for those VASPs that will have a custody business while those without is required a paid-up capital of Php 10 million (roughly $200,000). There will also be annual fees.

The BSP also requires the VASPs to protect the customer’s wallets and adopt a risk management system to mitigate risks that may arise from outsourcing.

Consumer Protection and Diligence

The VASP must create campaigns to educate their customers about safeguarding their virtual asset and fiat currency wallets, cybersecurity tips, the actual fees and charges, and problem resolution procedures.

Crypto wallets are not just any other e-money wallets. In fact, it’s just a representation of the customer’s address on the blockchain (called a public address) which can only be accessed by signing it with a private key. To keep things simple to the customer, some VASPs do not give the private key to their customers, but some also do. With that the BSP requires the licensed VASPs to disclose and explain to their customers whether the responsibility of protecting the private key rests with them or not.

The BSP also wants VASPs to only engage with other VASPs, financial institutions, and remittance and transfer companies that are duly authorized and licensed by appropriate regulatory authorities.

Transactional Requirements for VASPs

The required information for virtual asset transfers are the following.

  1. Originator’s name (the sending customer);
  2. Originator’s account number used to process the transaction (such as the virtual asset wallet);
  3. Originator’s physical address or national identity number that uniquely identifies the sending customer;
  4. Beneficiary’s name (who will be receiving the virtual asset?)
  5. Beneficiary’s account number (for example, the receiver’s wallet address)

Furthermore:

  1. For transactions of more than Php 50,000 or its equivalent in foreign currency, the originator’s institution must send the above information to the beneficiary institution and make it available upon request of the authorities. This must be transmitted immediately and in a secure manner.
  2. For pay-outs of more than Php 500,000, enhanced due diligence will be conducted. Payment must only be done via check payment or direct credit to deposit account of the beneficiary. 

For Currently Licensed VCES

They can apply for a Certificate of Authority not later than (3) months from the effectivity date of this circular. They must also comply with all the requirements within six months.

Read the BSP’s “Guidelines for Virtual Asset Service Providers” on their website or here in BitPinas.

This article is first published on BitPinas: Key Takeaways: Philippines Guidelines on Virtual Asset Service Providers (VASPs)

Please share and grow the BitPinas community.

Source: https://bitpinas.com/regulation/key-takeaways-philippines-guidelines-on-virtual-asset-service-providers-vasps/

Blockchain

Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn’t Sold Any Bitcoin

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Amid Rumors Of Dumping Its BTC Holdings, Elon Musk Maintains Tesla Hasn't Sold Any Bitcoin

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Elon Musk has been dragged under the bus by countless bitcoin proponents as the price of the flagship currency continues to take a downward movement. Bitcoin dropped 20%, sending prices to $45,000 as of yesterday.

As of publication, Bitcoin imitates analysts’ predictions that the asset could continue to dip for the most part of this week, and with Bitcoin now trading at $45,065 at press time, their analysis remains valid.

BTCUSD
BTCUSD Chart By TradingView

The Bitcoin selloff continues

Asides from the “bearish” tweets from Musk, which to many is simply just the Billionaire’s expression of his dissatisfaction with Bitcoin, Bitcoin could sustain more losses if Tesla sold its remaining Bitcoin holdings.

Following Tesla’s announcement, onlookers spotted a Bitcoin transfer of 19,259, worth over $872 million at press time. Analyst William Clemente observed that the transfer time coincided with Musk’s tweet, hinting that Tesla may have indeed called it a day for Bitcoin.

Musk reveals Tesla’s $1.5 billion holdings still intact, prices soar

However, Musk has recently cleared the air on whether the Bitcoin holdings are still under Tesla’s belt. In what could be considered the most recent positive tweet from Musk on Bitcoin, he wrote “To clarify speculation, Tesla has not sold any Bitcoin.”

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Some excited Bitcoiners are holding on to the news as a sign that Tesla has not lost all interest in Bitcoin, despite Musk’s tweets that Dogecoin is a superior asset to Bitcoin. On the other hand, skeptical Bitcoiners are convinced that in a matter of time, Tesla will pull through with its Bitcoin sale.

Recall that Elon Musk teased that this could be the case, given that Bitcoin proponents have continued to critique Tesla’s decision. Shortly after hinting that Tesla might give up its $1.5 billion Bitcoin holdings.

However, Bitcoin has since surged by 7% since Musk’s clarification on Tesla’s Bitcoin holdings.

Bitcoin doesn’t need Elon Musk

Meanwhile, analysts’ who heavily bought the dip have insisted that Bitcoiners pay no mind to the bear market.

In unison, key players agree that “Bitcoin doesn’t need Musk. Rather, Musk needs Bitcoin.” It is unclear where the market is headed going forward, but the sentiments from top Bitcoin proponents similarly claim that the bear trend is only temporary, as Bitcoin is still yet to bottom.

Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://zycrypto.com/amid-rumors-of-dumping-its-btc-holdings-elon-musk-maintains-tesla-hasnt-sold-any-bitcoin/

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Blockchain

Ethereum Co-Founder Vitalik Buterin Burns $6.7 Billion in Shiba Inu (SHIB) Tokens

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Vitalik Buterin, who was gifted half of Shiba Inu’s total supply, has burned 90% of his holdings worth nearly $7 billion. The Ethereum co-founder further said he would allocate the remaining 10% to charitable organizations while also praising the “dog token community” for its generosity.

Buterin Burns $6.7B in Shiba Inu

The Dogecoin rise to the top led to the creation of numerous copycats that garnered significant attention in the past several weeks. Perhaps none became more popular than the self-described DOGE-killer – Shiba Inu.

One of the compelling features came from the anonymous developers who decided to send half of the total supply to Vitalik Buterin – the co-founder of Ethereum. The other half remains locked for liquidity on Uniswap.

Buterin, who donated 50 trillion SHIB tokens (and other dog-related digital assets) to India Covid Relief Fund last week, has decided to burn the majority of his Shiba Inu holdings now.

“I have decided to burn 90% of the remaining Shiba tokens in my wallet. The remaining 10% will be sent to a (not yet decided) charity with similar values to CryptoRelief (preventing large-scale loss of life) but with a more long-term orientation.” – he explained in the transaction hash.

Buterin outlined the severe problem COVID-19 has created for the entire world and added, “it’s important to think about the longer term future too.”


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Upon the time of the transaction, the 410,24 trillion SHIB tokens Buterin sent from his wallet had a value of about $6.74 billion.

The booming popularity of SHIB caused a massive price surge in the past few weeks. It culminated in an all-time high at nearly $0.00004 after a listing on the world’s leading crypto exchange – Binance.

The Generosity of Dog People

Ethereum’s co-founder touched upon his aforementioned decision to donate a substantial amount of his dog tokens to charity organizations.

“Plenty of dog people have shown their generosity and their willingness to not just focus on their own profits but also be interested in making the world as a whole better.”

However, he also attracted some heat following his actions as some angry developers created coins with offensive names. As such, he urged the community to refrain from sending him new tokens without his consent in the future.

“I don’t want to be a locus of power of that kind. Better to just print the coins into the hands of a worthy charity directly (though do talk to them first.)”

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptopotato.com/ethereum-co-founder-vitalik-buterin-burns-6-7-billion-in-shiba-inu-shib-tokens/

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Blockchain

$2.38 billion ‘rekt’ in crypto markets as Bitcoin drops to $43,000

Republished by Plato

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Over $2.38 billion worth of Bitcoin and other cryptocurrencies were liquidated in the past 24 hours as the market fell by double-digit percentages, data from multiple sources showed.

Money gone

‘Liquidations,’ for the uninitiated, occur when leveraged positions are automatically closed out by exchanges/brokerages as a “safety mechanism.” 

Futures and margin traders—who borrow capital from exchanges (usually in multiples) to place bigger bets—put up a small collateral amount before placing a trade. If the market moves against them, the collateral is fortified and the position said to be ‘liquidated.’

Yesterday saw nearly $3 billion getting liquidated. $1.26 billion of that, as the below image shows, came from Bitcoin trades alone, with Ethereum trades ($515 million), Ripple trades ($80 million), and Dogecoin trades ($69.42 million) trailing in behind.

Image: Bybt

Overall, $1.78 billion worth of liquidations came from ‘long’ positions, or from traders borrowing capital to bet at higher asset prices. $345 million came from ‘short’ positions, or traders betting for lower prices (prices did fall lower, but the volatility may have contributed to even ‘shorts’ getting liquidated.)

Among all exchanges, Huobi saw over $633 million worth of liquidations, Binance saw $399 million, while options powerhouse Deribit saw liquidations worth $287 million.

In all, over 300,000 traders were liquidated, with the single largest liquidation occurring on crypto exchange Huobi—a Bitcoin to the tune of $90 million.

Musk’s Bitcoin scare

As such, the market pullback started shortly after Tesla CEO Elon Musk tweeted with regard to the carmaker’s $1.5 billion Bitcoin position on Sunday. “Mr. Whale,” an anonymous account on Twitter popular for their market calls, wrote yesterday that Bitcoiners would ‘slap themselves’ after they find out Tesla ‘dumped the rest of its Bitcoin holdings.’

It could have been probably a joke or a mere opinion from someone on the internet. But Musk replied to that with a single word: “Indeed.”

At press time, however, Musk put to rest the thousands of ensuing tweets that Tesla had, indeed, sold the remaining of its Bitcoin. “To clarify speculation, Tesla has not sold any Bitcoin,” he said in a reply to ‘Bitcoin Archive.’

The market rose shortly after that. But is one man’s tweets have such an impact on crypto justified?

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Coinsmart. Beste Bitcoin-Börse in Europa
Source: https://cryptoslate.com/2-38-billion-rekt-in-crypto-markets-as-bitcoin-drops-to-43000/

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