Philippines eyes payment operator registration freeze, tighter VASP checks
The Bangko Sentral ng Pilipinas plans to pause new operator-of-payment-systems registrations for 12 months to review its licensing and taxonomy framework. During the freeze, the central bank would keep evaluating existing applications but would not approve or reject them, and new OPS activities could not begin without explicit authorization. The draft circular also tightens rules for payment arrangements involving virtual asset service providers. BSP-supervised institutions offering merchant acquisition services would need to work with regulated VASPs only through direct merchant arrangements, backed by enhanced due diligence, closer monitoring, transaction and settlement caps, and other risk-based controls. The rule would cover virtual asset firms licensed or authorized by the BSP, the Securities and Exchange Commission, or another authority, placing them alongside higher-risk sectors such as gambling, gaming, adult-oriented businesses, and money service businesses. The BSP is still seeking public feedback.
