BSP Updates Regulations on Digital Banks

Editing by Nathaniel Cajuday

Almost a month after all six digital banks have started full operations, the Bangko Sentral ng Pilipinas (BSP) has recently approved the proposed changes in the establishment of digital banks and clarified prudential requirements, licensing, and documentation.

After almost a year after its proposal, BSP Deputy Governor Eduardo G. Bobier as officer-in-charge and the policy-making-arm of the central bank, the Monetary Board, approved Circular No. 1154, or the “Prudential Requirements Applicable to Digital Banks” on September 14.

It amended Circular No. 1105 or the “Basic Guidelines in Establishing Banks” issued last December 2020, which defined digital banks as a new bank category separate from existing bank categories where banking services are delivered over the internet.

The changes in the new rules now allow the central bank to consider applications to set up thrift, rural, and cooperative banks that have digital bank business models as digital bank license applications.

According to the circular, the abovementioned banks, which primarily offer financial products and services that are processed end-to-end through a digital platform or electronic channels under an Advanced Electronic Payments and Financial Services (EPFS) license, will be required to put up ₱1 billion as capital to be granted a digital bank license.

Also, existing thrift banks, rural banks, and cooperative banks that operate similar digital platforms or electronic channels under an EPFS license are given 5 years to meet the new minimum capital requirement for a digital bank license.

“These banks shall submit to the Bangko Sentral an acceptable capital build-up program within six months from the date of effectivity of this circular,” the BSP stated.

Despite the amendment, BSP Deputy Governor Chuchi G. Fonacier reminded that this does not mean that there will be digital bank licenses approved. Currently, the submission of applications from new digital banks is closed until Dec. 2024. (Read more: Bangko Sentral to Reopen Digital Bank Applications If Needed)

Moreover, the circular also included a January 2021 clarificatory memo on new bank applicants which previously explained that applicants that are proposing to operate business models that looked like digital banks will be approved as digital banks.

Fonacier clarified that the central bank may require all banks with digital banking services to apply for the appropriate digital bank license as per its transitory provision, noting that the banks granted with a digital banking license may represent themselves to the public as a digital bank.

The BSP completed distributing certificates of authority (COA), the third and final step to enabling these financial institutions to start full operations, last August. (Read more: BSP: All Six Digital Banks Now Allowed to Operate)

There are currently six licensed digital banks in the country: Overseas Filipino Bank of Land Bank of the Philippines; Tonik Bank of Singapore; UNObank of Singapore; GoTyme, of the Gokongwei Group and Singapore-based Tyme; UnionDigital of UnionBank; and Maya Bank, owned by PayMaya of PLDT Inc.

Recently, the central bank’s Monetary Board approved the Test and Learn Framework, or the Regulatory Sandbox, that will allow the BSP-regulated institutions and related firms to test and offer some innovative products in a controlled environment. If it succeeds, the sandbox may eventually be useful for the domestic financial system. (Read more: Bangko Sentral OKs Regulatory Sandbox for Banks)

This article is published on BitPinas: BSP Updates Regulations on Digital Banks

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Bitcoin Shows Resilience In Dollar-Driven Bloodbath | BTCUSD September 26, 2022

In this episode of NewsBTC’s daily technical analysis videos, we examine the recent resilience in Bitcoin compared to traditional assets like gold, oil, and the S&P 500. We also compare BTC to the DXY Dollar Currency Index and past crypto bear market bottoms. Take a look at the video below: VIDEO: Bitcoin Price Analysis (BTCUSD): September::Listen

In this episode of NewsBTC’s daily technical analysis videos, we examine the recent resilience in Bitcoin compared to traditional assets like gold, oil, and the S&P 500. We also compare BTC to the DXY Dollar Currency Index and past crypto bear market bottoms.

Take a look at the video below:

VIDEO: Bitcoin Price Analysis (BTCUSD): September 26, 2022

After last Friday’s market close and extreme bearish sentiment last week following the Fed meeting, most investors and traders braced for a very bloody Monday open. But Bitcoin continues to show resilience compared to other markets. In this video, we put BTC head-to-head with traditional markets and more.

Comparing Bitcoin With Gold, Oil, S&P 500, And DXY

Here we can see that Bitcoin peaked before other asset classes, and has held up better in recent days compared to gold, oil, and the S&P 500.

Considering how strong the dollar has been, Bitcoin standing up this strong here is significant. Through the DXY comparison, we can also see that BTC held up well against the USD side of its trading pair compared to other top world currencies like the pound, euro, and yen that make up the DXY index.

BTC compared to other asset classes | Source: BTCUSD on
Bottom Signals Stack Up As Former Resistance Holds As Support

Last night we also had a weekly close in Bitcoin, which has caused the Relative Strength Index-based moving average to slightly turn upward. In the past, this was all that was necessary to change the tide in the overall trend from bear to bull.

Weekly momentum continues to get shockingly close to a bullish crossover. The repeated failure to cross bullish, yet no new lows being made is also notable. Price continues to grind and test former all-time high resistance turned support. 

Several weekly indicators could suggest the bottom is in | Source: BTCUSD on

Related Reading: Bitcoin Reacts To 75 Basis Point Fed Rate Hike | BTCUSD September 21, 2022

The Return Of Adam & Eve In Crypto Market

Bitcoin price action could be working on forming an Adam and Eve double bottom. The same bottom formation put in the 2018 bear market bottom. 

The lead into the pattern, volume trend, and various conditions of validating the formation are present, and the only thing that is missing is confirmation with a close above $25K.

Is the Bitcoin forming an Adam and Eve bottom? | Source: BTCUSD on
How Far Will The Unstoppable Dollar Trend Extend?

A bottom being in has more to do with the dollar at this point, but even the DXY is showing some signs of being overextended. The DXY has essentially went completely vertical. Such trends aren’t sustainable at this angle, and are bound to correct sharply. 

Superimposing Bitcoin behind the DXY and the DXY behind the 2017 BTCUSD chart could provide some clues to what might happen next. On the right, the DXY made a higher high, before collapsing. The DXY bottom turned out to be the top in the 2017 Bitcoin bull run.

Looking at the DXY chart with BTC behind it, the same sort of higher high setup ultimately resulted in a rejection and breakdown. The first level of support was swept, and at the second level, a bottom was found. If the anti-correlation continues between the dollar and Bitcoin, then if the DXY tops out, the next crypto bull run could follow.

Is the DXY forming an ending diagonal? | Source: BTCUSD on

Learn crypto technical analysis yourself with the NewsBTC Trading Course. Click here to access the free educational program.

Follow @TonySpilotroBTC on Twitter or join the TonyTradesBTC Telegram for exclusive daily market insights and technical analysis education. Please note: Content is educational and should not be considered investment advice.

Featured image from iStockPhoto, Charts from

BSP Updates Regulations on Digital Banks

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