The Bangko Sentral ng Pilipinas (BSP) has proposed a 12-month suspension on accepting and processing applications to register as an operator of a payment system, while it reviews its OPS taxonomy and licensing framework. The draft circular would not impose an immediate registration freeze until the measure takes effect, which is expected 15 calendar days after publication in the Official Gazette or a newspaper of general circulation.
Under the proposal, regulated virtual asset service providers would need to be handled through direct merchant arrangements when BSP-supervised institutions provide merchant acquisition services. VASPs would face enhanced due diligence, monitoring, transaction and settlement limits, and other risk-based controls. The rule would cover virtual asset firms requiring authorization from the BSP, the Securities and Exchange Commission, or another competent authority.
Applications received before the suspension begins could still be evaluated, but the BSP would neither approve nor deny them until the pause is lifted. Existing layered merchant relationships would also enter phased compliance reviews. The measure remains a draft, with the next step being finalization of the circular.
The regulatory action aims to tighten control over crypto payments and enhance oversight for virtual asset businesses in the Philippines. Market participants are expected to watch how the proposed freeze affects existing operators and the broader Philippine crypto payment ecosystem, with potential compliance costs and slower innovation as the framework evolves.
