The Bangko Sentral ng Pilipinas has proposed a 12-month suspension of new payment-system operator registrations while introducing tighter controls for payment arrangements involving virtual asset service providers. According to reports from Crypto.news, the central bank would temporarily stop accepting and processing applications to register as an operator of a payment system, or OPS, to support a holistic review of its OPS taxonomy, registration process and licensing framework. Applications submitted before the suspension could continue through the BSP's evaluation process, but the regulator would neither approve nor deny those applications until the 12-month period ends.
Under the proposed rules, payment arrangements involving regulated virtual asset firms would require direct merchant relationships and enhanced monitoring. As reported by Crypto.news, the requirement would cover virtual asset businesses that must hold a license, registration or authorization from the BSP, the Philippine Securities and Exchange Commission or another relevant authority. Covered institutions could impose transaction, settlement and exposure limits according to their assessed risks internally. The proposal builds on earlier BSP measures, including tightened token listing and monitoring requirements for licensed VASPs implemented in June.
BSP-supervised institutions would need to identify existing payment arrangements involving covered merchants, with layered structures facing assessment to determine compliance with the proposed direct-merchant requirement. According to Crypto.news, institutions would receive six months to complete that review and another six months to address identified weaknesses. Required changes could include restructuring contracts, imposing limits or ending arrangements that exceed the institution's risk tolerance. The draft would also strengthen merchant identification through a centralized National QR Code Merchant Database.
The proposed circular would take effect 15 days after publication in the Official Gazette or a newspaper of general circulation if approved. As reported by Crypto.news, the BSP is accepting written comments through its policy exposure draft portal, with stakeholders submitting feedback to policy officers identified alongside each draft. The central bank may revise the suspension, implementation periods or covered arrangements after reviewing industry responses. Existing registered operators are not ordered to stop operating under the draft, and applicants would be prohibited from starting activities requiring OPS registration during the freeze unless separately authorized by the BSP.
The proposed rules could significantly affect payment companies and regulated crypto firms operating in the Philippines. According to Crypto.news, the operational burden will depend on how the BSP defines covered arrangements in the final circular. Payment companies should monitor the final text, particularly its treatment of pending applications and existing relationships with VASPs. Regulated crypto firms may need to establish direct arrangements with acquiring institutions before continuing access to some Philippine payment channels, adding another compliance layer for institutions serving similar arrangements.
