Philippines Freezes New Crypto Firms for 12 Months Amid Regulatory Push
The Philippines' central bank is proposing a 12-month freeze on new payment system operators as part of efforts to tighten controls around digital payments and crypto businesses. The plan, outlined in a draft circular released by the Bangko Sentral ng Pilipinas (BSP) on September 7, aims to give regulators time for a 'holistic review' of its payment operator classification and licensing framework.
The proposed freeze would stop the BSP from accepting and processing new Operator of Payment System (OPS) applications for 12 months. Applications submitted before the freeze could still be reviewed, but the regulator would not approve or reject them until the pause ends.
The primary driver behind this regulatory step is a structural push to reduce risks at the points where Virtual Asset Service Providers (VASPs) interact with traditional fiat banking rails. Under the proposed rules, banks and regulated payment providers would have to deal directly with licensed crypto firms, cutting out third-party or layered payment arrangements.
The BSP also plans to create a National QR Code Merchant Database containing merchant identities, business registration details, payment providers, settlement accounts, and risk classifications. This database aims to help financial institutions identify merchants and track payment flows more clearly.