Binance, a global cryptocurrency exchange, revealed on Wednesday that it intends to purchase a local company in order to obtain regulatory licenses in the country. Binance’s general manager for the Philippines, Kenneth Stern, said the business was in “late stage talks” to buy a company with virtual asset services providers (VASP) and electronic money issuers (EMI).
“We are nearing the finish of the process of obtaining a VASP license and an EMI license in the Philippines.” “That is still on schedule,” Stern remarked, without providing a particular date.
A virtual asset service provider (VASP) is a company that allows the transfer or exchange of virtual assets, which are digital units that can be traded online and used for payment or investment. Meanwhile, EMI refers to online platforms that contain monetary value that is typically utilized to make payments.
Binance is considering acquiring a firm because the Bangko Sentral ng Pilipinas would not approve new VASP applications for three years beginning in September.
Stern is optimistic about the chances of bitcoin acceptance in the Philippines, owing to the country’s young population, which are often the target market for this alternative form of investment.
“The demography is ideal for cryptocurrency use.” “I think this is one of the reasons why we have a lot of adoption,” he said, citing the popularity of crypto-based games.
Meanwhile, Binance collaborated with the Department of Information and Communications Technology’s Cybercrime Investigation and Coordination Center to host a seminar to address prevalent cybercrime activities in the cryptocurrency area.
Among these are bogus crypto investments with big profits.
“Binance has been actively engaging with the Philippine government to guarantee that Filipinos are ready for bitcoin adoption by mitigating sector risks,” Stern said.
“While we ensure that our platform has comprehensive security and Know Your Customer (KYC) safeguards in place,” he continued, “we also want to help the government create a fertile field for fintech businesses to drive financial inclusion.”
KYC is the process of validating the identification of an account user in order to reduce fraud, money laundering, and other cybersecurity threats for financial organizations.
Binance’s crypto and blockchain-related services, which are available in 180 countries, include investments, fan tokens, and non-fungible tokens.