Philippines Freezes Payment-Sector Registrations Amid Tightened VASP Rules

The Philippines' central bank has proposed halting new payment-system operator registrations for a year to review its taxonomy and licensing framework. The move aims to tighten oversight of virtual asset service providers (VASPs) and ensure proper due diligence and monitoring in transactions involving these entities.

According to the draft circular, applications for OPS registration will be suspended for 12 months to facilitate the BSP's holistic review. Companies are not permitted to commence activities requiring OPS registration unless authorized by the BSP.

The proposed rules also require BSP-supervised institutions providing merchant acquisition services to enter into direct arrangements with regulated VASPs. These relationships would be subject to proper due diligence and monitoring, transaction and settlement limits, and other risk-based controls.