BSP to halt permits for new virtual asset service firms for 3 years

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, will stop processing applications for new virtual asset services providers (VASP) licences for three years starting September 1. The memorandum states that the central bank will conduct a reassessment based on market developments. It aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels. Applications that have completed stage 2 of the bank's licensing process by August 31 will be processed and assessed as normal. Those with incomplete requirements will be closed. Existing BSP-supervised financial institutions that wish to expand crypto operations will still be able to apply for a VASP licence.