Coins.ph Reaffirms Central Bank License Amid Gambling Transaction Allegations
Vexoda Newsroom
Philippine crypto exchange Coins.ph has stated its license from the Bangko Sentral ng Pilipinas (BSP) remains valid, despite reports of potential revocation linked to alleged offshore gambling transac
Coins.ph, a prominent cryptocurrency exchange in the Philippines, has issued a statement clarifying its operational status following circulating reports of a potential license revocation by the nation's central bank. The exchange asserts that its license from the Bangko Sentral ng Pilipinas (BSP) remains intact and that it continues to operate as a regulated entity. This clarification comes in response to allegations suggesting that the platform may have facilitated transactions involving offshore gambling operators, a prohibited activity.
The core of the reported issue centers on the BSP's alleged restrictions placed on InstaPay and PESONet transfers connected to DCPay Philippines, the entity responsible for Coins.ph's peso e-wallet services. Coins.ph, which processes a significant daily trading volume, approximately $52 million as of recent CoinGecko data, has firmly denied any deliberate involvement with offshore gaming entities. The company emphasizes its commitment to user funds being secure and its ongoing compliance with regulatory requirements.
To understand the context, the BSP has previously mandated financial institutions to sever ties with gambling websites, including those offshore, as part of efforts to maintain financial system integrity. These restrictions, reportedly stemming from a BSP Monetary Board Resolution, appear to specifically target DCPay's payment processing operations rather than the virtual asset services provided by Betur Inc., Coins.ph's crypto arm. This distinction suggests a targeted approach to payment channels suspected of illicit activity.
In reaction to the allegations and the BSP's directives, Coins.ph confirmed that certain services, such as cash-in and QRPh collections, experienced temporary unavailability. However, core functionalities like cryptocurrency trading, cash-outs, and bill payments were unaffected and remained accessible to users. The company is actively working to strengthen its internal controls as instructed by the central bank to prevent any misuse of its payment infrastructure.
This situation highlights the ongoing regulatory scrutiny faced by crypto exchanges globally, particularly concerning anti-money laundering and illicit transaction prevention. For Coins.ph, maintaining its BSP license is crucial for its continued operation and credibility within the Philippine market. The exchange's proactive denial and commitment to compliance aim to reassure its user base and stakeholders about its stability and adherence to regulations.
Traders and market observers should closely monitor any further official statements from the BSP regarding the specific nature of the restrictions and the outcome of Coins.ph's internal control enhancements. Any definitive action by the central bank, positive or negative, could influence user confidence and the operational landscape for digital asset services in the Philippines. Attention will also be on whether similar issues arise for other Philippine-based crypto platforms.
Source: Cointelegraph. Summarized and rewritten by the Vexoda Newsroom. This is market news, not financial advice.