Philippines Freezes Payment Licenses for One Year Amid Regulatory Review
The Philippines' Central Bank is implementing a one-year payment licensing freeze to review its regulatory framework. The Bangko Sentral ng Pilipinas (BSP) plans to suspend issuing new licenses for payment system operators, giving regulators time to conduct a comprehensive review of their taxonomy, risk management rules, and supervisory structure.
The freeze will cover all new requests for OPS registration, licensing, and related authorizations. Entities without prior authorization will be prohibited from operating during the suspension period, while applications already submitted will remain under evaluation until the pause ends.
While the short-term effect of the proposed OPS licensing freeze could restrict fintech expansion in the Philippines, the accompanying tightening of oversight is designed to elevate the region's standing as a secure digital finance hub. The regulator plans to hold principal acquiring institutions directly accountable for the end merchants they support, eliminating regulatory blind spots.