Digital Asset / Virtual Asset

Generally, Digital/Virtual assets are digital representations of values, recorded as property, proceeds, and funds, among others, that are neither issued nor guaranteed by a central bank or public authority, and do not have the legal status of currency or money. Digital/Virtual Assets are accepted by natural or legal persons as a means of exchange or payment or are used for investment purposes, and can be transferred, stored and traded electronically. Virtual Currencies are examples of Digital Assets.

Source: https://www.bankinghub.eu/themen/digital-assets ;

https://merlinone.com/what-is-a-digital-asset/BSP CN 1108Virtual Currency

A virtual currency (VC) is a type of digital “currency” created by a community of online users, stored in electronic wallets (e-wallets), and generally transacted online. They can be exchanged to/from cash through other people who are part of the community of users.It is not issued or guaranteed by central banks or government authorities. VCs may be transferred within the community of users. It may be used to buy virtual items (e.g., games, apps) or real goods from online shops/merchants willing to receive the VC as payment. In this sense, VCs are used as a medium of exchange.

Source:

https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/VC.pdfCryptocurrency

Cryptocurrency is a type of VC that uses cryptography – a method of storing and transmitting data in unreadable form so that only the intended receivers can read and process it. Cryptocurrency transactions can be carried out in a decentralized manner by a group of users.

Source: https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/VC.pdfFiat Currency

Coins and paper money minted and printed by the central bank of a countryDesignated and circulated as legal tender in the country; Used and accepted as a medium of exchange in the country.

Difference Between Fiat Currency, Virtual Currency and Cryptocurrencies

VCs, and by extension, Cryptocurrencies, are different from Fiat Currencies because: - They represent the value of Digital Assets, not physical assets.They may or may not be backed by the Central Bank or other public authority. Can only be bought and traded electronically.Although virtual currencies are not backed by any one government, some prolific currencies like bitcoin is beginning to be accepted as an accepted form of payment at several businesses. In the Philippines Virtual currencies are not considered legal tender.

While Fiat currency are:

- Coins and/or Paper Money, minted and printed by the central bank of a country, or E-Money issued by e-money issuers or e-money agentsTheir value is fully backed by the government of a countryCan be used as legal tender in the issuing country

Source: https://www.bsp.gov.ph/Media_and_Research/Primers%20Faqs/VC.pdf

Blockchains are the systems wherein cryptocurrencies are run. It is the underlying database technology that allows cryptocurrencies to function without a central authority. Transactions recorded on this database are looked at and confirmed by a community of users which verifies the authenticity of each recorded transaction.

Cryptocurrencies run on blockchain technologies which provide decentralized ledgers distributed across a vast network of computer systems. This set-up aims to improve transparency and security, and value is placed on the belief of these systems to deliver those features.

Practically, cryptocurrency is currently being used as a form of payment that can be exchanged online for goods and services if agreed to by the parties in a transaction. Traditional currencies, like the Philippine Peso, will need to be exchanged for the cryptocurrency to use the goods/services. 

Examples of goods or services that can be purchased with cryptocurrencies are: - game features (like SLP in Axie Infinity),other digital assets like digital real estate on the metaverse, andproducts offered by some businesses like Expedia, Cheapair.com, Virgin Galactic, Steam, etc.

- Investments. Some cryptocurrencies are treated like stocks whereby traders invest in them believing in the cryptocurrency’s underlying technology and its future usefulness and value appreciation.

Resource:

https://www.nasdaq.com/articles/news-and-insights/what-is-cryptocurrency-and-how-it-works

https://cryptocurrencyfacts.com/what-you-can-you-buy-with-bitcoin-and-other-cryptocurrencies/

https://www.fool.com/investing/stock-market/market-sectors/financials/cryptocurrency-stocks/is-cryptocurrency-good-investment/

Cryptocurrencies, as an example of virtual currencies, are legal in the Philippines. It's also good to note that activities of businesses related to these currencies are regulated by the Bangko Sentral ng Pilipinas.

For more details you may refer to BSP Circular 1108:
https://www.bsp.gov.ph/Regulations/Issuances/2021/1108.pdf

Much like trading on the stock markets, you make money trading cryptocurrencies by buying them at a lower price and selling them at a higher price. The difference between the two prices is your earnings.

How much you invest in cryptocurrencies is dependent on your appetite for risk. What is important to note is that the cryptocurrency market is known to be highly volatile so that means that although there is a possibility for higher returns, there is also a possibility for higher losses.

Earnings from the sale of virtual currencies to PHP that net a gain to the end user is subject to income tax. Please note that Maya does not compute nor withhold income tax every time you trade crypto. By trading, you're responsible for settling your taxes with the BIR.

For more information you may refer to the ff article:
https://www.grantthornton.com.ph/insights/articles-and-updates1/lets-talk-tax/taxing-income-from-cryptocurrencies/

Resource:

https://www.taxumo.com/blog/cryptocurrency-taxation-philippines-guide/

https://businessmirror.com.ph/2021/08/23/gains-from-cryptocurrency-based-games-taxable-bir/

With the Maya Invest feature, any verified user is able to trade in cryptocurrencies. You may select from our list of supported cryptocurrencies and buy/sell these assets right away, or you may also read more on each cryptocurrency before deciding to purchase/sell.

Maya currently supports the following cryptocurrencies:

• BTC Bitcoin
• ETH Ethereum
• USDT Teter
• ADA Cardano
• LINK Chainlink
• UNI Uniswap
• SOL Solana
• QNT Quant
• DOT Polkadot
• MATIC Polygon

There are many different cryptocurrencies on the market operating on several different networks and protocols with different purposes and functions. With Maya, we support the trading of several of these cryptocurrencies. It is important to note that although we support a list of cryptocurrencies, Maya does not recommend one cryptocurrency over another and we highly recommend doing further research on any particular cryptocurrency you are interested before buying/selling them.

You must be at least a verified account  in order to avail of the functions to buy/sell cryptocurrencies in the Maya App. As a responsible trading practice, it’s important for you to maintain copies of all cryptocurrency related transactions not only for record keeping purposes but also in case the regulators require these records for further inquiries.

Note: As new features come up, this may change and additional information may be requested in order to comply with regulatory standards.

No, since Bitcoin, Ethereum, and Philippine Pesos are all different kinds of assets, your cryptocurrency wallet is separate from your Maya wallet but you can access both wallets through the Maya app. You may access your Maya wallet on the home screen of your app, and your Cryptocurrency wallet within Maya Invest.

You may fund your cryptocurrency wallet by purchasing cryptocurrencies through the Invest menu in the Maya app.

Cryptocurrency can be stored on your behalf by Maya and you may view the value of your asset via the Maya app.

Your Maya transaction limits still apply for the Maya Invest function. Purchase limits apply for BUY CRYPTO (ie. 100K for Verified Users). For selling, there are no restrictions on the amount you can sell Crypto.

In case you exceed the MONEY IN Limits for your account, your account will still be credited the proceeds from your sell transactions within 24-48 Hours.

For further questions or concerns, you may contact our Maya Help Center at support@maya.ph or you may contact (+632) 8845-77-88 (Toll-Free: 1800-1084-57788) or dialing *788 using your Smart mobile phone.

Similar to buying cryptocurrencies, you may sell cryptocurrencies through the Maya Consumer App under its Invest Tile. Here's how:

1. Simply tap the “sell” button and select which cryptocurrency you’d like to sell.
2. Key-in how much you’re willing to sell.
3. Confirm the sale.

The PHP you receive will be reflected in your Maya wallet balance.

You may buy cryptocurrencies through the Maya App under Invest. Through the Maya app, you may use your Maya wallet balance as your source of funds. Maya supports a range of cryptocurrencies that you can buy (please refer to list of cryptocurrencies). Here's how:

1. Simply tap the “buy” button and select which cryptocurrency you’d like to buy
2. Key-in how much you’re willing to spend
3. Confirm the purchase.

The cryptocurrency that you bought will be reflected in your portfolio, along with its current peso value.

With Maya, you do not need a credit card to buy cryptocurrencies. You may fund your cryptocurrency purchases through your Maya wallet balance. Top up your wallet balance through any of our platforms. For a list of Maya's Cash-in channels, go to maya.ph/cash-in

"You will receive a transaction summary with a transaction number, the amount of cryptocurrency you purchased, when you placed the purchase, and for how much. You may save a copy of this summary onto your phone. "

Once a cryptocurrency purchase is confirmed and processed it cannot be reversed by the user. If you would like to get your money in peso value back, you would need to sell your cryptocurrency back to peso. Note that the pricing may have changed at this point.

You may access your cryptocurrency-related transaction history through your portfolio page on the Maya app. Your transaction history is separated per cryptocurrency and can be filtered to reflect specifically buy and/or sell transactions. This is also available for export onto your phone. Note that you may access transaction records up to three (3) months prior. It is trading best practice to frequently export your transaction data at least for record-keeping.

To access your transaction history, you may follow the following steps:

1. On the Invest Crypto page, TAP View All on Your Crypto Portfolio section
2. On the portfolio page, select and tap a cryptocurrency (ex: Bitcoin)
   1. Additional Features: You may filter transactions by tapping the funnel icon on the right side of the screen. You will be able to sort transactions by (1) Type of Transaction (Buy/Sell), and (2) Date.
   2. You may also export a record of your historical transactions by tapping the csv export icon on the right side of the screen

The total value you see in the Maya Invest menu is the equivalent peso value of all your cryptocurrency investments at a certain period of time. This peso value will change depending on when you check on it given the quick movement of the cryptocurrency market. It’s important to note that the cryptocurrency volume you own does not change, what changes is the equivalent peso value of that cryptocurrency based on current market conditions.