Philippines eyes payment operator registration freeze, tighter VASP checks
A central bank proposal would pause new payment operator registrations while requiring enhanced monitoring and transaction limits for arrangements involving virtual asset firms.
The central bank of the Philippines is proposing to suspend new registration of payment operator systems for a year, followed by enhanced scrutiny and transaction limits involving virtual asset service providers (VASPs). The Bangko Sentral ng Pilipinas (BSP) has drafted a circular that would halt acceptance and processing of applications for payment system operator registrations (OPS).
Entities currently operating under the registration could continue their evaluation process but would not receive approvals or rejections until the freeze is lifted.
The proposal mandates that BSP-supervised institutions dealing in merchant acquisition services for regulated VASPs must implement direct merchant arrangements, which would involve heightened due diligence, monitoring, transaction limits, and other risk-based controls. These controls would apply to VASPs licensed, registered, or authorized by the BSP, the Philippine Securities and Exchange Commission, or other authorities.
VASPs are categorized alongside gambling businesses, gaming providers, adult-oriented businesses, and money service businesses. The draft circular is set to take effect 15 days after its publication, and the BSP is currently open for public feedback. The central bank has reached out to Cointelegraph for additional information but has not received a response at the time of publication.
Written by urgent.news from Cointelegraph's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
