Philippines eyes payment operator registration freeze, tighter VASP checks
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has proposed a 12-month freeze on new payment-system operator registrations while tightening controls on payment services involving virtual asset service providers (VASPs). The draft circular would suspend application processing for payment system operators (OPS) to allow a comprehensive review of licensing rules, and enforce enhanced due diligence and transaction limits on BSP-regulated institutions dealing with VASPs. Existing applications can be evaluated but no approvals or denials will be issued during the freeze.
Why it matters
The BSP’s proposal aims to strengthen regulation and oversight of virtual asset-related payment arrangements amid growing concerns over risks linked to VASPs. By imposing stricter compliance measures and halting new registrations temporarily, the move could impact how payment services and virtual asset businesses operate in the Philippines. The source does not explicitly state the potential market or user implications.
Key context
The BSP’s draft circular distinguishes VASPs alongside other high-risk sectors such as gambling, gaming, adult-oriented businesses, and money service businesses, reflecting concerns over associated financial risks. The draft would come into effect 15 days post-publication if finalized, and the BSP is currently soliciting public feedback. Cointelegraph contacted BSP for further comment but had not received a response before publishing.
Key numbers and entities
The Bangko Sentral ng Pilipinas (BSP) is the main regulatory authority involved. The freeze on OPS registrations would last 12 months. VASPs under BSP, Philippine Securities and Exchange Commission, or other authorities’ supervision are affected. No specific figures beyond these timelines and entities are provided.
What remains unclear
Details around the specific reasons for the freeze and the holistic review, exact regulatory changes expected after the freeze, and how the tighter VASP checks will be implemented remain unspecified. The BSP’s response to Cointelegraph’s request for comment was not available at the time of publication.