Philippines Freezes New Crypto Licenses for 12 Months

The Philippines' financial regulator is proposing a one-year pause in the licensing of payment system operators. According to a draft rule by Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona Jr., the freeze will give the regulatory agency enough time to conduct a comprehensive review of its payment taxonomy, risk management rules, and supervisory structure.

The licensing pause will cover all new requests for OPS registration, licensing, and related authorizations. This means entities without prior authorization would be prohibited from operating during the suspension period. The freeze is intended to last 12 months, allowing the BSP to assess and improve its regulatory framework.

While the temporary setback may affect crypto businesses in the region, tightened oversight could ultimately benefit fintech in the Philippines and improve security. The regulator's review aims to address any potential weaknesses and ensure a more robust financial system.