Philippines Imposes 12-Month Pause on Payment Operator Registrations

The Bangko Sentral ng Pilipinas (BSP) is proposing a temporary pause on new registrations for payment-system operators in the Philippines. This move is part of a broader effort to tighten integrity and risk controls around payments connected to virtual asset service providers (VASPs).

According to the BSP's draft circular, the suspension would last for 12 months, allowing for a 'holistic review' of its licensing framework. During this period, applications already submitted before the pause could still be evaluated, but the BSP would delay any approval or denial decision until the 12-month review concludes.

The regulator also proposes stricter requirements for BSP-supervised institutions when merchant acquisition involves regulated crypto-related businesses. Under the draft circular, these arrangements must be handled through direct merchant relationships with regulated VASPs, subject to enhanced due diligence and ongoing monitoring obligations.

The proposed controls would apply to VASPs that are licensed, registered, or authorized by the BSP, the Philippine Securities and Exchange Commission (SEC), or another competent authority. The classification has implications for compliance programs, as institutions providing merchant acquisition will likely need to revisit their vendor and counterparty screening policies and ensure they can demonstrate heightened controls for the relevant categories.