Philippines Central Bank Freezes New Payment Operator Registrations
The Philippines' central bank, Bangko Sentral ng Pilipinas (BSP), has proposed a 12-month suspension on new registrations for payment system operators as it reviews the country's licensing framework and introduces tighter controls for virtual asset service providers.
Under the draft circular, the BSP would stop accepting and processing new applications for Operator of Payment System (OPS) registration during the proposed suspension. This pause will allow the central bank to conduct a 'holistic review' of the OPS taxonomy, registration process, and licensing framework, including related risk management and regulatory requirements.
The draft also proposes stricter requirements for BSP-supervised institutions that provide merchant acquisition services involving regulated VASPs. These institutions would need to maintain direct merchant arrangements with VASPs rather than rely on additional payment layers, subject to enhanced due diligence, ongoing monitoring, transaction and settlement limits, and other risk-based controls.
The proposal remains open for public feedback and is not yet a final rule. If approved, the circular would take effect 15 days after publication. Existing registered payment operators would not be subject to the proposed 12-month registration freeze.