The Philippines’ central bank has proposed suspending new payment-system operator registrations for 12 months while imposing stricter controls on payment systems involving virtual asset service providers (VASPs).
Under a draft circular, the Central Bank of the Philippines (BSP) said It will suspend the acceptance and processing of applications to conduct a “comprehensive review” of the classification and licensing framework of Payment System Operators (OPS).
Applications submitted before the moratorium may continue to be evaluated, but the BSP will not approve or deny any until the moratorium is over. Firms will be barred from undertaking activities that require OPS registration unless the regulator otherwise approves them.
The proposal requires BSP-supervised institutions to offer merchant acquisition services to manage regulated VASPs through the direct merchant system. These relationships will 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 other authorities. VASPs are listed alongside gambling businesses, gaming providers, adult-oriented businesses and financial services businesses.
The draft, if finalized, will be effective 15 days after publication and the BSP is currently accepting feedback.
Cointelegraph reached out to the BSP for more information but did not receive a response prior to publication.
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