1. What is BSP?

Overview of Tokens Regulation in the Philippines

Tokens in the Philippines are regulated by the Bangko Sentral ng Pilipinas (BSP) to enforce financial laws and regulations related to Tokens. The main regulatory measures include:

1. Licensing and Registration: BSP requires all Tokens exchange operators to register as payment system operators and provide quarterly reports, including transaction and user information.

2. Anti-Money Laundering and Anti-Terrorist Financing Measures: BSP has introduced anti-money laundering (AML) and know your customer (KYC) regulations, requiring Tokens exchanges to comply with these provisions.

3. Regulatory Framework: BSP issued Circular No. 944, requiring Tokens exchanges to provide quarterly reports, including transaction and user information, to enhance transparency and protect users from fraud.

4. Legal Status: The Philippines is one of the first countries in Southeast Asia to actively regulate Tokens-related activities. In 2017, BSP enacted regulations treating Tokens exchanges as money service businesses, requiring them to register with BSP and comply with AML and KYC regulations.

5. Challenges: Despite these regulatory measures, Tokens farming and mining in the Philippines still face legal uncertainties, including high energy costs, climate conditions, and regulatory risks.

2. Who founded BSP?

According to the provided information, Ballswap (BSP) is a Tokens token operating on the Ethereum blockchain and is part of the BitBall ecosystem. This ecosystem has been active since July 2018, aiming to provide a comprehensive suite of services and platforms for its users, focusing on decentralized finance (DeFi) and beyond. Therefore, the founders of Ballswap (BSP) are the team behind the BitBall ecosystem.

3. Which venture capitalists invested in BSP?

According to the provided information, the following venture capital firms have invested in the Tokens project:

1. Tiger Global: Participated in investments in several crypto projects, including the crypto financial service Current and the Indian Tokens exchange CoinSwitch.
2. Coatue: Led the token sale for Braintrust, completing a $100 million funding round.
3. True Ventures: Participated in the token sale for Braintrust.
4. Blockchain Ventures: Participated in the token sale for Braintrust.
5. HashKey: Participated in the token sale for Braintrust.

Additionally, Tiger Global participated in 19 investments in crypto projects in Q1 2022, a 90% increase compared to the previous quarter.

4. How does BSP operate?

How BSP Tokens (Philippine Virtual Asset Service Providers) Operate:

1. Regulatory Framework: The Bangko Sentral ng Pilipinas (BSP) is responsible for regulating virtual asset service providers (VASP) to ensure compliance with all relevant rules and regulations, including anti-money laundering, terrorist financing, and information technology risk management.

2. License Application: VASP must obtain a certificate of authority from BSP in order to operate as a money service business (MSB). The application process involves three stages: submission of application, review and assessment, and obtaining the certificate of authority.

3. Operational Requirements: VASP must adhere to BSP's rules and regulations, including outsourcing, liquidity and operational risk management, IT risk management, business continuity management, and internal controls.

4. Trading and Payments: VASP may offer Tokens trading and payment services but must comply with BSP's regulatory requirements. For example, the Philippine National Bank has installed Bitcoin ATMs, allowing users to sell Bitcoin directly at the machines and withdraw cash.

5. Security Measures: VASP must implement security measures to protect user assets and information, including the use of blockchain technology and two-factor authentication.

In summary, BSP Tokens (VASP) operate under the regulation and supervision of BSP in the Philippines and must comply with relevant rules and regulations to ensure the stability and security of the financial system.