Philippine central bank bolsters cyber security and Bitcoin operators regulation

Philippine central bank bolsters cyber security and Bitcoin operators regulation

Today the Philippine central bank is reinforcing cyber security observation to help boost banks’ fortification and is trying to regulate bitcoin operators to deal with money laundering. A lot of banks around the world became a victim of cyber attacks that include fraudulent SWIFT messages usage. Just the same method was used at the February’s massive theft from the Bangladesh central bank.

Bitcoin

Nestor Espenilla central bank deputy governor told, that the Philippine central bank has set up a particular cyber security division to craft cyber security policies and test the ability of oversee institutions to control cyber security issues. “We have a core IT supervision group and within that group we created a new division that is focused on cyber security issues to strengthen our capacity to deal with these,” he said.

Policymakers were also looking at tightening regulations for money ordering companies and adjusting operators of virtual currencies to make attempts to deal with money laundering more effective. Bitcoin users more than doubled in the Philippines in the first half of last year. So based on accessible estimation, bitcoin transactions passing through filed companies in this country span from $2 to $3 million per month.

Espenilla mention: “That is what we are looking to do, whether it is now time to impose hard regulations for virtual currency operators. Right now, we look at them as akin to remittance companies”.

The Philippine central bank abrogated the license of Philrem Service Corporation, a remittance company that was used for making transactions of some amounts of the $81 million that hackers robbed from the Bangladesh central bank. The Anti-Money Laundering Council published a grievance against Philrem on April 28 and prosecuted it for hiding the money track throught a web of transfers and transacions using currency conversions through Philippine bank accounts, before moving the cash through casinos in Manila and junket operators. But all in all Philrem has disclaimed this misdemeanor.

 

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