Philippines Considers Suspension of Payment Operator Registration and Stricter VASP Oversight

The Bangko Sentral ng Pilipinas (BSP) has put forward a proposal to pause the registration of new payment operators in the country. This move is part of a broader effort to tighten regulatory oversight of virtual asset service providers (VASPs). Under the proposed measures, existing VASPs would be subject to more rigorous monitoring, including transaction limits and enhanced compliance requirements.

The initiative aims to address concerns related to financial security and the potential misuse of virtual assets. By imposing a registration freeze, the BSP intends to review and strengthen the regulatory framework governing digital asset transactions and service providers.

The proposal is currently in the consultation phase, with stakeholders in the crypto and financial sectors invited to provide feedback. If implemented, these measures could impact the growth and operation of virtual asset firms within the Philippines, aligning local regulations more closely with international standards.

The BSP has emphasized that these steps are part of ongoing efforts to ensure a secure and transparent environment for digital asset activities, safeguarding consumers and maintaining financial stability.