Philippine Central Bank Proposes 12-Month Freeze on Payment Operator Registrations, Tightens VASP Oversight

The Bangko Sentral ng Pilipinas (BSP) has issued a draft circular proposing a 12-month moratorium on accepting new registrations for payment system operators (OPS) and stricter controls over payment arrangements involving virtual asset service providers (VASPs). The BSP stated the move aims to conduct a comprehensive review of its classification and licensing framework.

Under the draft, the BSP will suspend the acceptance and processing of OPS applications during the moratorium period. Applications submitted prior to the suspension may continue to be evaluated, but will not be approved or denied until the moratorium ends. Relevant entities may not engage in business activities requiring OPS registration unless specifically authorized by the regulator. Additionally, BSP-supervised institutions offering merchant acquiring services must connect to licensed VASPs through direct merchant arrangements, which will be subject to enhanced due diligence, transaction and settlement limits, and other risk management measures.

The requirement applies to virtual asset enterprises licensed, registered, or authorized by the BSP, the Philippine Securities and Exchange Commission, or other regulators, with VASPs listed alongside betting, gaming, adult industry, and money service businesses. If the draft is ultimately approved, it will take effect 15 days after publication. The BSP is currently soliciting public comments.