Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has proposed freezing the registration of new payment system operators for 12 months, according to a published draft circular, as reported by Cointelegraph. During the moratorium, the regulator will conduct a comprehensive review of its classification system (taxonomy) and licensing procedures for payment operators. The proposal applies to all new registration applications, although applications submitted before the moratorium begins will be allowed to continue processing — however, the regulator will neither approve nor reject them until the freeze period ends. Companies will not be permitted to commence activities requiring registration as a payment system operator without special authorization from BSP. The draft circular will take effect 15 days after the final version is published, and the regulator is currently accepting feedback and proposals from interested parties.
In addition, BSP is strengthening oversight requirements for companies working with virtual asset service providers (VASP). Any credit institutions supervised by BSP that provide merchant acquiring services will be required to serve licensed VASPs only through direct merchant agreements. Such relationships are subject to enhanced due diligence on the origin of funds, in-depth transaction monitoring, the setting of limits on transaction and settlement amounts, and the application of other risk-based control measures. The requirement covers all virtual asset companies, which must hold a license, registration, or authorization from BSP, the Philippine Securities and Exchange Commission, or another regulatory authority. Virtual asset service providers are equated for regulatory purposes with companies engaged in gambling, gaming, adult entertainment, and money transfers. Through this approach, the regulator aims to build a clearer and more manageable payments ecosystem in which all participants clearly meet new supervisory standards and minimize money laundering risks.
The BSP proposal reflects the growing attention of Philippine authorities to the cryptocurrency sector and payment innovations. The adoption of such a moratorium points to the need to revise the regulatory framework amid rapid technological development and an expanding range of market participants. A comprehensive taxonomy review will allow the regulator to more clearly define which services require licensing and establish fair rules for both traditional and digital payment operators. This decision is consistent with the broader trend of strengthening regulatory oversight over cryptocurrency platforms — the Philippine Securities and Exchange Commission has previously flagged several crypto platforms, including dYdX, as operating without proper registration. In this way, Philippine authorities are taking a comprehensive approach to normalizing the digital financial ecosystem, balancing openness to innovation with protecting consumers and the financial system from risks.