The Central Bank of the Philippines (BSP) has suspended for three years the consideration of applications and the issuance of licenses for providers of virtual asset services (VASP). This is stated in the memorandum.
According to the document, its “modified approach” is designed to balance promoting innovation in the financial sector with keeping potential risks at a manageable level.
From September 1, the regulator will impose a temporary moratorium on new requests from VASP. Extensions of existing licenses may be granted subject to a re-evaluation of the company. The changes were prompted by “recent market developments”.
“This strategically shifts the emphasis toward assessing the overall effectiveness and risk-management systems of existing BSP-registered VASPs, their impact on financial services and the Financial Inclusion program, and their contribution to achieving the Digital Payments Transformation Roadmap,” said BSP Governor Felipe Medalla.
According to BSP data as of June 30, there were 19 license holders for virtual asset service providers in the country. Five of them are not operating, and one organization ceased activity in January.
Earlier, Binance CEO Changpeng Zhao announced to obtain authorization from the BSP to operate in the Philippines. Later, Infrawatch PH urged authorities to launch an investigation into the platform’s illegal marketing campaigns.
In July, spoke out against the ban on cryptocurrencies. However, the head of the central bank noted the environmental harm of Bitcoin and the high volatility of digital assets.
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