BSP Proposes 12-Month Pause on New Payment-System Operator Registrations

The Bangko Sentral ng Pilipinas (BSP) has proposed a temporary pause on new registrations for payment-system operators in an effort to tighten integrity and risk controls around payments connected to virtual asset service providers (VASPs).

The central bank's draft circular, released for consultation, also outlines stricter requirements for BSP-supervised institutions when merchant acquisition involves regulated crypto-related businesses.

According to the proposal, new applications for operators of payment systems will be suspended for 12 months pending a 'holistic review' of its licensing framework. However, existing applications would continue to be assessed during this period.

The BSP-supervised merchants and acquiring services would need to structure arrangements with regulated VASPs through direct merchant relationships subject to enhanced due diligence and monitoring.