Philippines proposes 12‑month freeze on new payment‑operator licences and tighter VASP rules

Regulator pauses new payment‑operator licences

Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has proposed a 12‑month freeze on new registrations for operators of payment systems. The move is part of a “holistic review” of the country’s payment‑system taxonomy and licensing framework.

Key points

• Freeze lasts 12 months, starting 15 days after the draft is finalised.
• Applications submitted before the freeze can still be evaluated, but no decision will be made until the pause ends.
• Entities cannot start activities that need a payment‑system licence unless the BSP gives special authorisation.
• Supervised institutions that offer merchant‑acquisition services must apply enhanced due‑diligence when dealing with virtual‑asset service providers (VASPs).
• Transaction and settlement limits, plus other risk‑based controls, will be imposed on VASP relationships.

Draft circular details

The BSP’s draft circular says the pause will apply to all new applications for payment‑system operator (OPS) licences. Existing licences remain valid, and the regulator will continue to monitor them. The circular also lists VASPs alongside gambling, gaming, adult‑oriented and money‑service businesses for regulatory purposes.

Enhanced VASP monitoring

Financial institutions that provide merchant‑acquisition services must handle regulated VASPs through direct merchant arrangements. These arrangements will be subject to stronger monitoring, transaction caps and other risk‑based safeguards. VASPs must be licensed, registered or authorised by the BSP, the Philippine Securities and Exchange Commission, or another competent authority.

Implementation timeline

If the draft is finalised, it will take effect 15 days after publication. The BSP is currently accepting comments from the public.

Sources

• Cointelegraph