The Bangko Sentral ng Pilipinas has published a draft circular that would temporarily stop the acceptance and processing of new registrations for operators of payment systems. The proposed pause would last for 12 months while the central bank reviews how these entities are classified and licensed.
The same proposal would also tighten controls on payment services connected to virtual asset service providers, adding more direct oversight in an area the BSP says carries financial crime and other risks.
One-year suspension under review
Under the draft, the BSP would suspend new operator of payment systems registration applications for one year. The central bank said the temporary halt is intended to give it time to reassess the current classification framework and licensing regime for these entities.
The measure is still in proposal form. The BSP is currently seeking comments on the draft circular before deciding whether to finalize the rules.
Stricter rules for services linked to virtual assets
Beyond the proposed registration freeze, the draft would impose tighter oversight on payment services associated with virtual asset service providers, or VASPs. The BSP outlined a set of controls for these arrangements, including direct merchant agreements with regulated digital-asset service providers.
The proposal also calls for enhanced due diligence and monitoring, along with transaction and settlement limits that would be set according to risk. These measures are aimed at strengthening oversight of payment flows involving digital-asset activity.
Scope of the proposed requirements
The draft says the rules would apply to digital-asset service providers that require licenses or registrations from the BSP as well as from other authorities. In practice, that would extend the framework beyond a narrow set of firms and place payment-related relationships involving regulated crypto service providers under closer scrutiny.
According to the BSP, the proposed controls are intended to help manage financial risks and address money-laundering concerns tied to these services.
What happens next
For now, the circular remains a draft and is open for public comment. If the BSP adopts the proposal in final form, the new rules would take effect 15 days after publication.
That means both parts of the package — the 12-month halt on new payment system registrations and the stricter requirements for payment services tied to virtual asset businesses — still depend on the outcome of the consultation process.
Source: en.bloomingbit.io