Philippines central bank considers temporary freeze on new payment operator licenses

Bangko Sentral ng Pilipinas is weighing a temporary moratorium on new Operator of Payment Systems licenses to tighten licensing and oversight of payment operators and virtual asset service providers. The move targets new registrations, audit requirements, cybersecurity reviews, and compliance checks. It is not a crypto trading ban, and existing licensed operators retain approval unless the regulator states otherwise.

TL;DR

• The central bank may temporarily freeze new payment operator registrations.
• The review focuses on stronger audit, cybersecurity, and compliance standards for VASPs.
• No blanket ban on crypto trading or automatic cancellation of existing licenses.

Scope of the BSP Review

The Operator of Payment Systems framework covers payment processors and related financial infrastructure. In crypto, this overlaps with VASPs, payment gateways, exchange-linked services, and businesses moving customer funds. The update signals tighter supervision through operational reviews, cybersecurity checks, and higher compliance expectations for licensed entities. A moratorium would pause new applications until the review concludes or requirements are updated.

Status of Existing Operators

A pause on new registrations does not cancel current licenses. Crypto users in the Philippines are not banned from trading or holding digital assets under this proposal. Existing firms may undergo additional reviews, which differs from being ordered to halt operations. Any escalated action would require explicit regulatory notice.

Why Oversight Is Tightening

VASPs sit at the intersection of financial crime, consumer protection, cybersecurity, and payment-system stability. They handle onboarding, transfers, wallets, fiat ramps, trading access, and custody. Weak controls can propagate risk across banking systems, crypto markets, and payment networks, so regulators often target VASPs as the primary gateways connecting consumers to these systems.

Regional Context

Across Asia, some jurisdictions promote licensed crypto activity while raising standards, and others proceed more cautiously. A temporary licensing freeze allows regulators to reassess risks and requirements without banning the sector.

What the Market Watches Next

The key question: whether the BSP formalizes the moratorium through an administrative order. A formal freeze would delay new entrants and increase review intensity for existing operators. A narrower measure would reduce market impact. The precise language of any order will determine scope and timing.

Source: Bangko Sentral ng Pilipinas media materials on payment operator licensing and VASP compliance. Media release: BSP. This article was written by the News Desk and edited by Samuel Rae.