Philippines freeze new payment licences for 12 months

The Bangko Sentral ng Pilipinas, the central bank of the Philippines, is proposing to stop accepting new registrations from payment service providers for twelve months. At the same time, the bank wants to introduce stricter rules for institutions that provide payment services to companies operating in virtual assets. This concerns a draft regulation that has not yet been finalised.

In brief:

• The central bank of the Philippines wants to suspend new registrations for payment service providers for one year.
• Institutions that serve crypto-related businesses through payment arrangements will face tighter rules.
• If the regulation is adopted, it will take effect fifteen days after publication.

Suspension while the framework is reviewed

The proposed measure follows a decision by the Monetary Policy Committee of the Bangko Sentral ng Pilipinas, which approved changes to the manual for regulating payment systems. The suspension of new registrations applies to providers seeking to enter as Operator of Payment System, while the bank reviews the existing licensing framework.

This is a deliberate pause: the regulator wants to evaluate the current rules before allowing new parties into the payments landscape. An end date for the review has not yet been announced.

Stricter requirements for crypto payments

In addition to the registration freeze, the draft decision introduces tightened obligations for institutions that provide payment services to businesses working with virtual assets through so-called merchant acquiring arrangements. These include enhanced customer due diligence, more intensive monitoring, and limits on transactions and settlement flows.

The draft document also introduces new definitions, including the distinction between direct and layered payment arrangements, in which intermediaries play a role between the bank and the ultimate merchant. Anyone designated as an intermediary falls under the new obligations.

If the rules are formally adopted, they will take effect fifteen days after official publication. The Philippines is therefore not the only country tightening the reins around crypto-related payment services. Earlier, the Chilean crypto exchange OrionX closed its doors after a $7 million shortfall, a case that once again highlighted the risks in the sector.