The Bangko Sentral ng Pilipinas (BSP) has proposed a temporary pause on new registrations for payment-system operators while tightening how banks and other BSP-supervised institutions handle payment arrangements involving regulated virtual asset service providers (VASPs). The move, set out in a draft circular, is designed to give the regulator time to “holistically” review its approach to licensing and the taxonomy used for payment-system oversight.
Under the proposal, the BSP would suspend the acceptance and processing of applications from entities seeking to operate payment systems for 12 months. Applications already submitted before the suspension would still be assessed, but the BSP would not approve or deny them until the pause period ends—effectively freezing new licensing decisions in the segment while the framework is reviewed.
Key takeaways
- The BSP proposes a 12-month halt on accepting new payment-system operator (OPS) registration applications to complete a review of its licensing and taxonomy.
- Existing applications would continue to be evaluated, but BSP would delay approval or denial until the pause ends.
- Banks and BSP-supervised institutions that offer merchant acquisition services would have to route merchant relationships with regulated VASPs through direct arrangements with added risk controls.
- The stricter requirements would apply to VASPs licensed, registered, or authorized by the BSP, the Philippine Securities and Exchange Commission (SEC), or another relevant authority.
- The draft would take effect 15 days after publication if finalized, and BSP is currently collecting feedback.
OPS registration pause aims at revising the regulator’s framework
In the draft circular, the BSP says it would suspend acceptance and processing of OPS applications as part of a “holistic review” of its taxonomy and licensing framework for payment systems. The regulator’s intent is not to immediately deny new entrants, but to slow the flow of new licensing activity while it revises how payment operators are categorized and supervised.
Importantly, the suspension would not wipe out pending work. Applications submitted before the pause would be allowed to continue through evaluation, but BSP would withhold any approval or denial until the 12-month review period concludes. The proposal also states that entities would not be allowed to start activities that require OPS registration unless the BSP grants authorization outside the standard process.
Merchant acquisition rules tighten for regulated crypto-related payments
Alongside the OPS pause, the BSP’s draft includes specific constraints for merchant acquisition services—functions commonly tied to how merchants are onboarded and how card or payment processing is enabled.
According to the draft, BSP-supervised institutions offering merchant acquisition services would need to handle regulated VASPs through direct merchant arrangements. Those relationships would be subject to enhanced due diligence and monitoring, as well as transaction and settlement limits and other risk-based controls.
For market participants, the practical impact is straightforward: even if a VASP is properly regulated, payment rails managed by BSP-supervised intermediaries would still face stricter oversight. The draft does not describe the exact level of transaction or settlement limits, but it explicitly requires risk-based measures as part of the direct arrangement model.
Which businesses are in scope—and why VASPs are grouped with higher-risk categories
The BSP draft is explicit that the requirement would apply to VASPs that are licensed, registered, or authorized by the BSP, the SEC, or another relevant authority. It frames VASPs as a type of regulated entity that will fall under the same kind of heightened scrutiny typically used for other higher-risk sectors.
In the proposal, VASPs are listed alongside categories that include gambling businesses, gaming providers, adult-oriented businesses, and money service businesses. While the draft does not equate all these industries in terms of risk, the grouping suggests the BSP intends to treat crypto-related payment arrangements with a risk-control mindset rather than relying solely on “regulated” status.
That matters for businesses seeking to expand merchant processing services to crypto platforms: the BSP’s draft indicates that compliance architecture—including enhanced due diligence and active monitoring—will be central to approvals and ongoing operations, not an afterthought.
Timeline and next steps for the draft circular
The BSP states that if the draft circular is finalized, it would take effect 15 days after publication. The central bank is currently accepting feedback, meaning the eventual final rule could reflect adjustments based on industry comments.
Cointelegraph reported that it reached out to the BSP for additional information but did not receive a response before publication.
Related coverage from Cointelegraph notes that the Philippines SEC has flagged certain platforms as unauthorized—highlighting that Philippine regulators are actively working to enforce permissions and oversight for crypto-related activity. Against that backdrop, the BSP’s payment-system proposal appears focused on strengthening payment integrity and controls, particularly where payments interface with regulated virtual asset firms.
What to watch as BSP reviews its payment licensing approach
For investors, payments providers, and regulated VASPs planning expansion, the immediate question is whether the final rules will further define the scope of merchant acquisition limits and the specific due-diligence standards expected for direct arrangements. The next watchpoint is the 12-month OPS application suspension: once the pause ends, BSP’s revised taxonomy and licensing framework could determine how quickly new payment-system entrants can obtain approvals and under what conditions.
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