Philippine central bank plans tighter rules on VASP-linked payment services

The Bangko Sentral ng Pilipinas, or BSP, plans to suspend new applications for payment system operator licenses for 12 months while tightening rules for payment services tied to virtual asset service providers, Cointelegraph reported. The BSP recently released a draft review of its classification and licensing framework for payment system operators that includes the proposal. Applications filed before the suspension will continue to be reviewed, but no approvals or rejections will be issued until the 12-month pause ends. The draft also requires BSP-supervised institutions offering merchant payment services to VASPs to sign direct merchant agreements and apply risk-based controls including enhanced due diligence, monitoring, and transaction and settlement limits. The rules would apply to crypto firms that must obtain a license, registration, or approval from the BSP, the Philippine SEC, or other relevant authorities. If finalized, the rules will take effect 15 days after publication in the official gazette. The BSP is currently gathering feedback from the industry and related authorities.