Annex

Registration Process for Virtual Currency Exchange

The registration process for virtual currency exchange constitutes a two-stage process as follows:

I. Stage 1 is a preliminary process for BSP to determine if applicant is eligible for registration. In
Stage 1, the applicant shall submit the following to the Integrated Supervision Department I,
SES, for evaluation:

a. Application Letter – which must include the entity’s contact number/s, email address
and the classification of RTC it is applying for, signed by the authorized signatory

b. Business Plan – which should contain the following information, at a minimum:
i. Purpose of the Business;
ii. Form of Business Organization and Organizational Structure;
iii. Products and Services to be offered (including the virtual currencies that the
applicant will accept);
iv. Capital Requirements and details of source of funding/financing;
v. Target Market;
vi. Target Network (including number of branches/offices to be accredited as
Remittance Sub-agents (RSAs), if any);
vii. Projected Annual volume of transactions for three (3) years; and
viii. Operational Workflow.

c. List of proposed owners/controlling shareholders, directors, and principal officers

Amount of % of Contact E-mail
Name Citizenship Address Position TIN
Contribution Ownership Number Address


Upon submission of the stage 1 documentary requirements, the applicant shall be invited to
present its business model. ISD I will then evaluate and review the documents submitted and
representations made during the presentation.

If applicant is deemed eligible for registration in Stage 1, the applicant shall be advised to
submit the prescribed Data Entry Template/BSP-prescribed forms and the documentary
requirements as listed in Annex A of BSP Circular No. 942 and as contained in BSP
Memorandum No. 2017-014 dated 31 March 2017 which provides the detailed guidelines in
the issuance of COR.

II. Stage 2 processing involves evaluation on compliance with the following:
1. Documentary requirements, which include:
i. Incorporation papers duly authenticated by the Securities and Exchange Commission
(SEC) and/or copy of the Certificate of Registration duly authenticated by the
Department of Trade and Industry (DTI);
ii. Copy of business registration/permit from the city of municipality having territorial
jurisdiction over the place of establishment and operation of the office for the
current period, which should indicate the line of business of the registered entity;

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 Annex A

iii. Notarized Deed of Undertaking of the entity and members of the Board of Directors
signed by the president and/or directors;
iv. Proof of attendance or a sworn undertaking to Attend the required Anti-Money
laundering seminar;
v. Sworn certification that a Money Laundering and Terrorist Financing Prevention
Program (MLPP) has been developed, adopted and disseminated to all employees;
vi. Certification from the President as to compliance with the required minimum capital;
and
vii. Copy/ies of tie-up agreements with other remittance agents.

2. Fitness and propriety of the directors and principal officers
i. Personal Data Sheet of the Directors/principal officers;
ii. NBI Clearance

3. Regulatory requirements
i. Circular No. 808 dated 22 August 2013 on IT Risk Management Framework
ii. Circular No. 857 dated 21 November 2014 on Financial Consumer Protection
iii. Part Q of the Manual of Regulations for Non-Bank Financial Institutions, as amended
by Circular No. 950 dated 15 March 2017 on Anti-Money Laundering Regulations

The following are the issuances/guidelines1 relative to VC exchange registration with the BSP:

1. Circular No. 944 dated 06 February 2017 provides the rules and regulations governing
operations of virtual currency exchanges in the Philippines. As indicated in the Circular, a
VC exchange shall obtain a Certificate of Registration (COR) to operate as a Remittance and
Transfer Company pursuant to and upon compliance with the requirements of BSP Circular
No. 942 dated 20 January 2017 or Section 4511N of the Manual of Regulations for Non-
Bank Financial Institutions.

2. Circular No. 942 dated 20 January 2017, on the other hand, provides the rules and
regulations governing the operations and reporting obligation of Money Service Business
(MSB) operations which include Remittance and Transfer Company (RTC) and Money
Changing/Foreign Exchange Dealers. The Circular also indicates the registration process of
MSB operators. Pursuant to said Circular, the registration of money service business
operator constitutes a two-stage process.

3. Memorandum No. 2017-014 dated 31 March 2017 which provides the detailed guidelines
on the issuance of Certificate of Registration and other applications requiring prior
approval.

1
Accessible at www.bsp.gov.ph/regulations/regulations.asp.

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