Philippines Moves To Freeze New Payment Operators As VASP Rules Tighten

• A 12-month ban on new payment system operator registrations is suggested by the Philippines.
• Through improved due diligence and transaction monitoring, BSP intends to tighten VASP oversight.
• The proposed regulations may impose transaction and settlement limits on cryptocurrency payment arrangements.
• Direct merchant connections with payment institutions under BSP supervision may be necessary for regulated VASPs.

The Philippines is getting ready to watch over its payment industry and virtual asset sector closely. The central bank of the country is thinking about rules for companies that handle payments and for businesses that deal with virtual assets.

The Bangko Sentral ng Pilipinas (BSP) has suggested a 12-month stop on applications for companies that run payment systems. The move is part of a broader review of the country’s payment-system licensing and regulatory framework.

Philippines Proposes 12-Month Freeze on New Payment Operators, Tightens Crypto Payment Controls

The Bangko Sentral ng Pilipinas has proposed a 12-month suspension on new Operator of Payment System registrations while it reviews the country’s licensing framework. The draft… pic.twitter.com/EDLJUapilO

— Wu Blockchain (@WuBlockchain) September 7, 2026

BSP Proposes 12-month Freeze On New Payment Operators

Under the draft circular, the BSP would temporarily stop accepting and processing new OPS registration applications for 12 months. The central bank said the pause would allow it to conduct a “holistic review” of its taxonomy and licensing framework. Applications submitted before the freeze could still be evaluated, but the BSP would not issue final approvals or rejections until the suspension period ends.

Entities that require OPS registration would also be prohibited from starting regulated activities unless they receive specific authorization from the central bank.

Tighter Controls For VASP Payment Arrangements

The proposed rules also target payment arrangements involving virtual asset service providers. BSP-supervised institutions that provide merchant acquisition services would be required to maintain direct merchant relationships with regulated VASPs. These relationships would face enhanced due diligence, ongoing transaction monitoring and other risk-based controls.

The proposed framework could also introduce transaction and settlement limits for certain arrangements involving virtual asset firms. The goal is to strengthen oversight and reduce potential risks linked to financial crime, fraud and other vulnerabilities in digital asset transactions.

VASPs Face Greater Regulatory Scrutiny

The draft covers virtual asset firms that are required to be licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission (SEC), or another relevant authority.

VASPs are included in the same risk-sensitive category as businesses such as gambling operators, gaming providers, adult-oriented businesses and money service businesses.

This classification signals the regulator’s focus on enhanced monitoring for sectors considered to carry higher financial and compliance risks.

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