The Bangko Sentral ng Pilipinas has given its nod to two companies to operate bitcoin exchanges in the country and is moving forward to regulate digital currency business, PhilStar reported.

Speaking at the FinTech Thought Leadership Roundtable Series presented by FINTQ, BSP Governor Nestor Espenilla Jr. said that the companies are based locally, but have international roots.

The BSP recognizes the potential of virtual currencies and related technologies to transform financial services industry. It could lead to faster and economical transfer of funds, while also supporting financial inclusion.

“We see a rapid increase in the trajectory. It is coming from a small base but increasing that is why we decided to require them to register,” Espenilla said. “That is the importance of putting them under the regulatory framework. They have to comply with it. We are moving to regulate them.”

Earlier this year, the central bank issued regulatory framework for digital currency exchanges and similar entities that are operating in the country. The guidelines are particularly aimed at digital currency exchanges in the Philippines offering services or engaging in activities that provide facility for the conversion or exchange of fiat currency to virtual currencies or vice versa.

"The Bangko Sentral does not intend to endorse any [virtual currency], such as bitcoin, as a currency since it is neither issued or guaranteed by a central bank nor backed by any commodity. Rather, the BSP aims to regulate [virtual currencies] when used for delivery of financial services, particularly, for payments and remittances, which have a material impact on anti-money laundering (AML) and combating the financing of terrorism (CFT), consumer protection and financial stability,” according to the BSP guidelines.

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