Philippines Considers Drastic Payment Operator Freeze—What This Means for Cryptocurrency Users

Ever wonder what happens when a central bank hits the pause button on new payment-system operators for a whole year? Well, the Philippines’ Bangko Sentral ng Pilipinas (BSP) is doing exactly that—freezing registrations and tightening the reins on virtual asset service providers (VASPs). It’s like they’re hitting “refresh” on their playbook, aiming for a thorough overhaul of how digital payments and assets get regulated. This move isn’t just about rules; it’s about blending innovation with caution in a world where digital finance can be as slippery as quicksand. Curious how this will shake up the Philippine payments landscape and what it means for merchants tangled in the web of new compliance hoops? Dive in—this regulatory ride is just getting started. LEARN MORE.

The Philippines’ central bank has proposed freezing new payment-system operator registrations for 12 months while imposing tighter controls on payment arrangements involving virtual asset service providers (VASPs).

Under a draft circular, the Bangko Sentral ng Pilipinas (BSP) said it would suspend acceptance and processing of applications for operators of payment systems (OPS) to conduct a “holistic review” of its taxonomy and licensing framework.

Applications submitted before the suspension could continue to be evaluated, but the BSP would not approve or deny any until the pause ends. Entities would be barred from starting activities that require OPS registration unless the regulator authorizes them otherwise.

The proposal would require BSP-supervised institutions offering merchant acquisition services to handle regulated VASPs through direct merchant arrangements. Those relationships would be subject to enhanced due diligence and monitoring, transaction and settlement limits and other risk-based controls.

The requirement covers virtual asset firms that must be licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission, or another authority. VASPs are listed alongside gambling businesses, gaming providers, adult-oriented businesses and money service businesses.

The draft would take effect 15 days after publication if finalized, and the BSP is currently accepting feedback.

Cointelegraph reached out to the BSP for more information but did not receive a response before publication.

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