Crypto

PDAX Expects Trading Volume Surge For VASPs Amidst Binance Exit

The Philippine Digital Asset Exchange (PDAX) is anticipating a surge in cryptocurrency trading volumes within the Philippines, following the imminent departure of Binance, a leading global cryptocurrency exchange.

PDAX CEO Nichel Gaba envisions the expected departure of Binance, which has been flagged by the Securities and Exchange Commission (SEC) as an unauthorised exchange in the Philippines, as a pivotal moment for local virtual asset service providers (VASPs) to expand their market presence. Nichel predicts that the exodus of traders from Binance could elevate the country’s cryptocurrency trading volume to an estimated US$6 billion by 2024.

Data from the Bangko Sentral ng Pilipinas (BSP) indicate the presence of 17 VASPs in the Philippines, with 10 operational and seven inactive. PDAX, among the operational ones, is gearing up for this anticipated growth.

The SEC in the Philippines has been working towards imposing a ban on Binance, citing various issues both locally and internationally. This development, according to Nichel, is likely to cause a substantial number of Filipino cryptocurrency traders to seek alternative, legitimate trading platforms.

Nichel Gaba

“I think the best option for them is to go to a licensed exchange like PDAX. I think our strategy is to focus on being that best alternative for them,”

Nichel said.

The BSP-regulated VASPs are expected to process crypto assets worth approximately US$3 billion by the end of the year. This projection doesn’t account for unregulated transactions occurring outside of VASP channels.

Highlighting this trend, Nichel mentioned that some overseas Filipino workers, particularly those in the US, are increasingly using digital currencies like Bitcoin to remit funds to their families in the Philippines.

This scenario presents both challenges and opportunities for the Philippine crypto market, as PDAX and other VASPs prepare to navigate the shifting dynamics of digital asset trading in the country.

Featured image credit: Edited from freepik