Philippines Central Bank to suspend the registration of crypto service providers for three years

Provided they meet the requirements of the local regulator, companies can apply for a license until August 31

12.08.2022 - 15:25

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What’s new? Since September 1, the Central Bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), is imposing a three-year moratorium on issuing licenses to new Virtual Asset Service Providers (VASPs). In its memorandum, the BSP acknowledges that VASPs provide users with opportunities to expand access to financial services while reducing costs. However, it notes that they also pose various risks to the country’s financial stability.

The BSP’s statement

What else does the statement say? Existing financial institutions supervised by the BSP (BSFI) can still apply for a VASP license. This requires compliance with risk management systems, including client suitability assessment, as well as the availability of a financial consumer education and awareness program.

Reportedly, applications that pass the second phase of the licensing process by August 31, 2022, will be processed and evaluated for compliance with the criteria to operate as a VASP. Applications with incomplete requirements will be returned by the end of the month and marked as closed.

According to the BSP as of June 30, there are 19 institutions with VASP licenses in the Philippines, with five not yet operational and one that ceased operations in January.

In July, Infrawatch PH, a Philippines public policy think tank, called on the Department of Trade and Industry (DTI) to investigate cryptocurrency exchange Binance. The think tank’s experts argued their appeal by the fact that the platform does not have local registration and its promotional offerings lack relevant permissions.

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