BSP proposes 12-month freeze on payment operator registrations
In brief
- BSP suspends new payment operator registrations for 12 months to review licensing framework
- Virtual asset service providers face enhanced due diligence and transaction monitoring requirements
- Pending applications remain under evaluation but won't be approved until freeze ends
- Proposal takes effect 15 days after publication if finalized
Suspension Details
The BSP would suspend acceptance and processing of applications for operators of payment systems during the review period. Applications submitted before the suspension could continue to be evaluated, but the regulator would not approve or deny any until the pause ends. Entities would be barred from starting activities that require OPS registration unless the regulator authorizes them otherwise.
VASP Controls and Monitoring
The proposal imposes tighter controls on payment arrangements involving virtual asset service providers. BSP-supervised institutions offering merchant acquisition services must handle regulated VASPs through direct merchant arrangements.
Those relationships would be subject to enhanced due diligence and monitoring, transaction and settlement limits and other risk-based controls. The requirement covers virtual asset firms that must be licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission, or another authority.
Timeline and Feedback
VASPs are listed alongside gambling businesses, gaming providers, adult-oriented businesses and money service businesses in the regulatory framework. The draft would take effect 15 days after publication if finalized. The BSP is currently accepting feedback on the proposal.
