Philippines central bank proposes stricter crypto payments

TLDR

The Bangko Sentral ng Pilipinas (BSP) has proposed a one year freeze on new payment operator licenses and stricter controls on how banks handle crypto payments.

1. BSP wants a 12 month halt on new Operator of Payment Systems registrations and tighter rules for payment arrangements involving licensed virtual asset service providers.
2. Existing payment and crypto services are not banned, but unlicensed or offshore platforms could lose access to local peso payment rails and face more checks.
3. The rules are still in draft form, with consultation open, so the final impact will depend on how the circular is implemented and whether industry feedback softens the details.

Deep Dive

1. What BSP Is Proposing

According to a draft circular, BSP plans a 12 month suspension on accepting and processing new registrations for operators of payment systems, to conduct a holistic review of its taxonomy and licensing framework. Existing applications can be reviewed but not approved or denied during the pause, and firms cannot start OPS required activities without separate BSP approval.

At the same time, BSP would require BSP supervised institutions that acquire merchants to work only with regulated virtual asset service providers through direct contracts, subject to enhanced due diligence, closer monitoring, and transaction and settlement limits for crypto related payments. These controls are described in detail in reports on the proposed freeze and VASP checks from Cointelegraph and others.

2. Impact On Crypto Businesses And Users

The proposal focuses on licensing and payment system access, not a blanket ban on trading or holding crypto in the Philippines. Existing licensed payment operators can keep running, but new entrants would be delayed for about a year, and banks and payment providers would have to cut out layered or third party arrangements with crypto firms.

Only VASPs licensed or registered with BSP, the Philippine SEC, or another recognized authority would be allowed to plug into official payment rails, while unregistered or offshore platforms could be blocked from direct peso payment connections. Stricter monitoring and limits at the merchant level could make day to day crypto payments more controlled and slow down aggressive expansion by higher risk players.

3. What To Watch Next

The circular is an exposure draft, not yet final. BSP is accepting written feedback, and the rules would take effect 15 days after publication, with the 12 month freeze starting as specified in the final document. Coverage in outlets like Crypto Briefing notes that the market is watching whether BSP formalizes the moratorium as an administrative order and how far enhanced VASP controls go.

Key signals to monitor are: publication of the final circular, any list of approved VASPs and OPS, how banks implement transaction limits and monitoring, and whether BSP couples this with broader crypto guidance. If implementation is strict with limited exceptions, new payment and crypto startups will face a tougher route into the regulated system.

Conclusion

BSPs proposal is part of a wider global trend of tightening oversight at the points where crypto touches traditional payment rails, aiming to control financial crime and systemic risk without outright banning crypto. For Philippine users, the near term story is less about losing access and more about a slower, more regulated path for new payment operators and stricter scrutiny of which crypto firms can plug into the banking system.