Philippines Bolsters Digital Assets and Digitalization Agenda

The Philippines is taking steps to strengthen its digital assets and digitalization agenda. The Bangko Sentral ng Pilipinas (BSP), the country's central bank, has proposed halting new payment-system operator registrations for a year while imposing stricter controls on payment arrangements involving virtual asset service providers (VASPs).

The BSP aims to 'holistically' review its taxonomy and licensing framework through this temporary suspension. During this period, companies are not permitted to commence activities requiring OPS registration unless the BSP authorizes them.

Under the newly proposed rules, BSP-supervised institutions that provide merchant acquisition services must enter into direct arrangements with regulated VASPs. These relationships would be subject to proper due diligence and monitoring, transaction and settlement limits, and other risk-based controls.