- The Philippines’ central bank has proposed a 12-month pause on new registrations for payment system operators.
- The proposal also calls for tighter controls on payment arrangements involving virtual asset service providers (VASPs).
The Philippines’ central bank, Bangko Sentral ng Pilipinas (BSP) has proposed a 12-month suspension on new registrations for payment system operators as it reviews the country’s licensing framework and introduces tighter controls for payment arrangements involving virtual asset service providers (VASPs).
Under the draft circular, the central bank would stop accepting and processing new applications for Operator of Payment System (OPS) registration during the proposed suspension. The BSP said the move would allow it to conduct a “holistic review” of the OPS taxonomy, registration process and licensing framework, including related risk management and regulatory requirements.
Applications submitted before the suspension would not be automatically cancelled. The BSP would continue evaluating them, but would not approve or reject those applications until the 12-month period ends. Companies would also be unable to begin activities requiring OPS registration during the pause unless they receive separate authorization from the central bank.
BSP Sets Tighter Controls for Crypto-Linked Payments
The draft also proposes stricter requirements for BSP-supervised institutions that provide merchant acquisition services involving regulated VASPs.
Under the proposed Philippines framework, these institutions would need to maintain direct merchant arrangements with VASPs rather than rely on additional payment layers. The relationships would be subject to enhanced due diligence, ongoing monitoring, transaction and settlement limits, and other risk-based controls.
The proposed requirements would cover VASPs that are licensed, registered or otherwise authorized by the BSP, the Philippine Securities and Exchange Commission (SEC), or another relevant authority. The draft places VASPs alongside other sectors requiring heightened oversight, including gambling and gaming businesses, adult-oriented businesses and money service businesses.
The proposal remains open for public feedback and is not yet a final rule. If approved, the circular would take effect 15 days after publication. Existing registered payment operators would not be subject to the proposed 12-month registration freeze.
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