Philippines Freezes New Crypto Payment Operators Amid Regulatory Tightening
The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has proposed a 12-month freeze on new payment system operators. This move aims to tighten controls around digital payments and crypto businesses in the country.
According to the draft circular released by the BSP on September 7, the pause would give it time for a 'holistic review' of its payment operator classification and licensing framework. New Operator of Payment System (OPS) applications will not be accepted or processed during this period, although those submitted beforehand can still be reviewed.
The proposed rules also introduce stricter checks on payment arrangements involving regulated virtual asset firms. Banks and licensed crypto firms will have to deal directly with each other, cutting out third-party or layered payment arrangements. Only VASPs approved by the BSP, SEC, or other regulatory authorities will be allowed to access these payment rails.
The BSP also plans to create a National QR Code Merchant Database containing merchant identities, business registration details, and risk classifications. This database aims to help financial institutions identify merchants and track payment flows more clearly.