The Philippine Stock Exchange (PSE) has reportedly acknowledged that cryptocurrency is an asset class that can no longer be ignored amid increased interest in Bitcoin and other crypto assets among Filipinos.
PSE president and CEO Ramon Monzon said that the local bourse should also be the country’s exchange platform for digital assets and that the matter has already been discussed in a top management meeting, according to CNN Philippines.
Monzon also cited the reasons why any exchange for cryptos should be conducted at the PSE.
“It’s because we have the trading infrastructure. But more important, we’ll be able to have investor protection safeguards especially with a product like crypto,” Monzon explained.
17 registered crypto exchange service providers
To date, the Bangko Sentral ng Pilipinas has green-lighted 17 cryptocurrency exchanges to operate in the country.
In January, the central bank tightened its rules on crypto assets amid a surge of interest in digital assets.
“We have seen accelerated growth in the use virtual currency exchanges in the past three years, and it is high time that we broaden the scope of existing regulations in recognition of the evolving nature of this financial innovation and set out commensurate risk management expectations,” BSP Governor Benjamin Diokno said.
Filipinos attracted to crypto volatility
Monzon noted that cryptocurrencies have no fundamentals, but many Filipinos are attracted to this new asset class because of its volatility.
“It’s all capital gains, meaning the price I get from my crypto is the price you are willing to pay… So a lot of people are attracted to that because of the volatility.”
Monzon warned of the dangers of instant riches, though. He said that should there be any structured cryptocurrency trading in the Philippines, it should be under PSE’s watch.
The Philippines saw increased interest in Bitcoin and other cryptocurrencies after the flagship cryptocurrency hit new highs this year.
The top crypto soared to over $63,000 in April before dropping to around $30,000 following billionaire Elon Musk’s comment on the environmental impact of Bitcoin and China’s crackdown on mining farms.