Philippines central bank freezes crypto payment licenses

TLDR

The Bangko Sentral ng Pilipinas (BSP) has proposed a 12 month pause on new payment system operator licenses and tougher controls on crypto payments; it is not yet in effect.

1. BSP wants to stop issuing new Operator of Payment System licenses for 12 months while it reviews its payment and crypto oversight framework.
2. Existing payment and crypto firms can keep operating, but regulated VASPs would face stricter rules and unlicensed or offshore platforms could be cut off from local payment rails.
3. The proposal is still a draft; the freeze would start only after a final circular is published, so the key thing to watch is the final text and timelines.

Deep Dive

1. What BSP Is Actually Proposing

Multiple reports say BSP has issued a draft circular proposing a 12 month freeze on new registrations for operators of payment systems, or OPS, while it conducts a holistic review of its taxonomy and licensing framework. That includes stopping acceptance and processing of new OPS applications for the period, with pre existing applications evaluated but neither approved nor denied until the pause ends. Cointelegraphs summary and Crypto.news both stress this is an exposure draft, not yet a binding rule.

The key nuance is that this targets new payment operator licenses, not a blanket shutdown of crypto or payments in the Philippines. Existing registered operators can continue to operate unless BSP later takes separate action against them.

2. How It Hits Crypto Payments And VASPs

The same proposal tightens how banks and payment firms interact with virtual asset service providers. BSP supervised institutions offering merchant acquisition services would have to deal directly with regulated VASPs, under enhanced due diligence, closer transaction monitoring, and transaction and settlement limits. Coinpedias breakdown notes that only VASPs approved by BSP, the Securities and Exchange Commission, or other domestic authorities would be allowed onto these payment rails, with unregistered and offshore platforms effectively blocked.

For users, this points to more controlled on and off ramps through locally licensed providers, rather than informal or layered payment arrangements. Day to day crypto trading and holding on exchanges that are already licensed should not be directly banned by this move.

3. What To Watch Next

The draft says final rules would take effect 15 days after publication in the Official Gazette or a major newspaper, and only then would the 12 month clock start. BSP is currently accepting written feedback and can still revise scope, timing, and how pending applications are treated, as highlighted by Crypto.news.

Beyond crypto, BSP also wants a National QR Code Merchant Database to make payment flows more traceable, which could reinforce monitoring of merchants that take crypto related payments. For crypto users and businesses, the practical steps are to watch for the final circular, confirm whether their provider is a regulated VASP, and track any notices from local banks or wallets about changes to payment connectivity.

Conclusion

BSP is signaling a cautious stance on the intersection of payments and crypto by pausing new payment operator licenses and tightening rules around how regulated VASPs connect to banks and merchants. The goal is to reduce risk at fiatcrypto touchpoints without outright banning existing activity, but it will likely raise the bar for unlicensed or offshore platforms trying to reach Philippine users. Until the draft becomes a finalized circular, the story is about regulatory direction rather than immediate disruption.