Philippine central bank warns against transacting with unauthorized virtual asset service providers

ChainCatcher reports, according to BusinessWorld, that the Central Bank of the Philippines has warned the public and crypto users not to transact with unauthorized virtual asset service providers, as it could lead to financial losses due to fraud, security vulnerabilities, and operational failures.

The central bank stated that unauthorized VASPs also carry risks such as lack of legal recourse, absence of consumer support mechanisms, poor service quality, false advertising, improper handling of private keys, cybersecurity incidents, and data privacy concerns. Access may also be restricted due to government enforcement actions targeting illegal operations. The Central Bank of the Philippines pledged to continue collaborating with the Securities and Exchange Commission, National Telecommunications Commission, and other agencies to limit access by Philippine users to unauthorized VASP platforms, and urged consumers to protect personal information, maintain cyber hygiene, and transact only with licensed institutions.