Philippines freezes new payment operator licenses

The BSP proposes a 12-month freeze on new payment operator licenses and stricter rules for crypto service providers to enhance oversight and integrity in the Philippines.

The Bangko Sentral ng Pilipinas (BSP) has proposed a 12-month suspension on new registrations for Operators of Payment Systems (OPS). This move is part of a draft circular designed to review and strengthen the regulatory framework for payment operators and crypto-related businesses. During the suspension, the BSP will not process any new OPS applications, leaving pending applications in a state of uncertainty. The proposal also introduces stricter requirements for Virtual Asset Service Providers (VASPs). These include mandatory direct merchant arrangements, enhanced due diligence, increased monitoring, transaction and settlement limits, and classifying existing licensed VASPs as high-risk merchants. Merchant details will be recorded in the National QR Code Merchant Database under the new rules. The draft circular is open for public feedback and will take effect 15 days after official publication, though it has not yet been finalized or assigned an implementation date. These measures aim to bolster integrity controls and address risks associated with crypto and payment systems in the Philippines.