BSP: Cryptocurrency risky


BANK South Pacific (BSP) does not accept cryptocurrency transactions, says group chief executive officer Robin Fleming.
Responding to queries from The National, Fleming highlighted that cryptocurrencies posed some risks which included:

  • LACK of consumer protection. While traditional financial products have strong consumer protections in place, there is no intermediary with the power to limit consumer losses if bitcoins are lost or stolen.

One of the features cryptocurrency lacks in comparison to credit cards, for example, was consumer protection against fraud, such as chargebacks; and,

  • VOLATILITY. Cryptocurrencies are generally 10 times more volatile than traditional foreign exchange markets (can go up or down 10 times as far or as quickly as traditional foreign exchange markets).

“BSP does not accept cryptocurrency transactions as they are pseudonymous rather than anonymous in that the cryptocurrency within a wallet is not tied to people, but rather to one or more specific keys (or ‘addresses’),” Fleming said.
“Thereby, cryptocurrency owners are not identifiable, but all transactions are publicly available in the blockchain.
“Hence, proceeds of crime, tax evasion funds, counter terrorism financing and funds from internationally sanctioned countries are easily washed anonymously through cryptocurrency exchanges.
“While cryptocurrencies are digital currencies that are managed through advanced encryption techniques, many governments have taken a cautious approach toward them, fearing their lack of central control and the effects they could have on financial security.
“Regulators in several countries have warned against cryptocurrency and some have taken concrete regulatory measures to dissuade users. Additionally, many banks do not offer services for cryptocurrencies and can refuse to offer services to virtual-currency companies.”
Fleming said the legal status of cryptocurrencies varied substantially from country to country and was still undefined or changing in many of them.
“While some countries have explicitly allowed their use and trade, others have banned or restricted it,” he said.
“It remains unlikely PNG will use cryptocurrencies.”
The Bank of PNG has released a public notice warning the public that “cryptocurrencies are not currencies issued or regulated by the Central bank”.



    I have been approached by many of my friends to invest in this investment vehicle however I had a funny feeling that its not right due to nil information on its success.

    BSP please convert this news into a advertisement page in the daily newspapers for the benefit of everyone.

    Well done BSP CEO!

  • Innovation is about to shake your castle-like business structure. Cryptocurrency has no limitation and no boundaries and it is growing.
    you can’t stop. Soon you will have to jump on the wagon whether you like it or not.

  • Sounds interesting what will happen if the World goes into cashless society how Will bsp in PNG and Central Bank adapt to the changes if thats going to happen, are we still going to use cash?

  • since it is visual, an individual transects at his own risk. To Noku, it is tax avoidance method and even the central bank has no control over, meaning its not taxable by govt.

  • Thank you BSP CEO, Robin Fleming for this timely information. I have been in a dialogue with some of these cryptocurrency groups advising to invest by this means. I wasn’t convinced as they were over confident in facilitating this cryptocurrency.

    Thank you Mr. Fleming, CEO – BSP.

  • BSP has been enriching itself from the money of the poor. We don’t need the so call third party (the bank) between our transactions. The bank exist because of the people. Banks need to live up to our terms and conditions. If you cannot then we will surely leave you. We are tired of seeing fees imposed on our poor mothers, men and women of low income earnings. We will develop a system that operates outside of banks for the good of our mothers etc. Crypocurrency and block chain is the future alternative now whether you like it or not.

  • Bitcoin investment is real thus, cryptocurrencies are VISUAL yet the sole aim is to create CASHLESS SOCIETY. Sooner or later, BSP and BPNG will need to face their reality-hits-epic moments in time.
    on top of all these, Gov’t will NOT be taxed as its UNCONTROLLABLE AND WILD 10 folds with any of its single transactions.

    World is getting better and better i guess.

    I want to see how the so-called-corrupt-Gov’ts of this WORLD survive without tax from citizens.

    Its Tech-novation BABY!

  • Cryptocurrency is tax free. Sorry BSP you have been charging taxes on all transactions therefore it is good to have Cryptocurrency.

  • The Cropto world is fast becoming a force to be reckon in this modern era. BSP and BPNG, we are now into the crypto age, you will have find your place in there or else you will be left alone. The OBSOLETION of the central bank system is iminent.

  • Totally Disagree with you Mr. BSP CEO. Bitcoin is Freedom to the People.

    This News clearly shows that BSP is trying now to use the mass media to discourage people to use Crypto currency because the Bank might go Bankrupt if we the people embrace Crypto currency… BSP now trying to spread fear and doubt to the people…

    BSP and all Banks in general, your days are counted, now with Blockchain Technology we can take part in the Financial services worldwide without the need of Banks.

    Bitcoin is Freedom to People. People do transactions everyday, the Bank have been playing the role of middle man by verifying transactions and charging hefty transaction fees and have been robbing people just to facilitate simple transactions.

    This time we don’t need Banks. Blockchain Technology does the Work. If you read the article and still confuse inbox me and I will explain in detail the two points stated by the CEO to justify his argument that Bitcoin is Risky.

    Yupla noken faul, Banks make money out of people’s money. If you have a Bank Account, go get your yearly Bank Statement and calculate how much you as an individual give to your Bank in a year.

    Now they’re saying it’s risky but tomorrow they will accept it, mark my word!

    Crypto is a disrupter to the Banking System, Embrace it as we are advancing into a more Cashless Society into the future…

  • I invest in bitcoin and everyday I’m earning certain %s that BSP will not pay if I invest in it.Every Saturday my earnings is paid to my back office. In this platform form every thing is transparent. You can see live trading taking place from your back office.
    BSP every year you declare your profits in millions but you haven’t come up with a platform to help back those you legally scam everyday.

  • It’s a shame that the BSP CEO had to.come out publicly to discredit Bitxoin and Crytptocurrencies I general traded it’s own ledger the Blockchain that is decentralized, transparent and open-source.

    Cryptocurrencies and Blockchain are the technologies and way forward for PNG and.the masses to adopt as the world is mass adopting.

    BSP and all other commercial banks will go bankrupt soon. BSP your days are numbered and.your days are coming soon when your long cues will be a thing of the past.

    Your millions of Kina made yearly through bank fees alone will be a thing of the past. BSP CEO will be a sorry ass when the revenue of BSP will fall so drastically when the masses adopt this new form of currency and banking system driven on it’s own decentralized ledger system (Blockchain).

  • BSP you have been robbing from poor . You still don’t want individuals to invest in Bitcoin/crypto currency. Its an individuals interest.You have no rights to stop them. Stop bringing negativity to desuade the individuals.

  • The CEO of the day light Robbery Bank is fearing that soon his chances of Robbing the citizens with hefty fees are numbered

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