The Philippines Insurance Commission (IC) has become the latest to speak out against cryptocurrencies as it warns the public about the possible risks in using them.
In an advisory posted on the IC website, commissioner Dennis Funa explained that the public should exercise caution when dealing with them, reports the Phil Star.
Funa said that cryptocurrencies can be used in illegal activities and are not suitable investment options, adding:
While recognising the value of technological advancement on the use of cryptocurrencies, the IC likewise recognizes the corresponding risks involved in (their use). The apparent increase in the demand for cryptocurrencies and their popularity in terms of usage as a medium for payment and remittances worldwide makes (them) prone to being used for facilitating illegal activities, such as scams, money laundering, and terrorism financing.
Funa went on to say that as digital currencies such as bitcoin aren’t issued or guaranteed by the government, individuals who invest in them should educate themselves and be aware of the different rules and regulations surrounding them.
Interestingly, despite the caution that the IC has issued regarding digital currencies it has said that it will ‘keep an open mind’ to the potential they present in regulated sectors.
Funa said:
If and when warranted, we will issue appropriate regulations as far as the insurance, pre-need and (health maintenance organization) industries are concerned.
The IC’s warning comes at a time when the industry has seen rising interest in the market. As a result, regulators around the world are turning their attention to the sector. Last week it was reported that the U.S. Securities and Exchange Commission (SEC) had issued a subpoena to Riot Blockchain, citing the need for more information from the company.
Last year, Riot Blockchain changed its name as it shifted its focus to blockchain and cryptocurrency-related services. However, earlier this year, Jay Clayton, chair of the SEC, said that the agency was taking a closer look at companies that had moved into the blockchain and digital currency industry.
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