Does this news mean that cryptocurrency is now legal in the Philippines? I am sure that all banks in any country are governed and regulated by a central bank. In the Philippines Central Bank of the Philippines does that job. If a bank is now offering crypto service then it does look like they have got permission from the Central Bank.
This is a piece of good news for the crypto community. It makes life easier for those who are into crypto trading and also those who want to hold Bitcoin and other crypto for long-term gain.
Cryptocurrencies have been legal in the Philippines and the country has one of the highest populations of crypto users. Bangko Sentral ng Pilipinas (BSP) Circular No. 944 in 2017 made cryptocurrencies a valid payment method. You are correct that no commercial bank can offer any service without registration and getting the needed authorization from the Central Bank. I never knew there were Union Bank in other countries because we have such a bank in my country. However, they don't offer crypto services because the Central Bank forbids them from engaging in crypto transactions.
Although these crypto services offered by banks promote centralization, it has a way of promoting crypto awareness. Some people will never invest in the industry except institutions like banks are involved. It also attracts more investors to the industry. Hopefully as Bitcoin awareness keeps growing people will begin to see the importance of controlling their crypto investment, thereby ditching centralized platforms.