The Philippine central bank is weighing a temporary halt on new payment operator registrations alongside stricter oversight rules for arrangements that involve virtual asset service providers, according to a fresh regulatory proposal.
What the Proposal Covers
Under the plan put forward by the Bangko Sentral ng Pilipinas, the registration of new payment system operators would be paused while the regulator reassesses risks tied to the sector. The freeze is designed to give authorities time to tighten controls before allowing further entrants into the space.
The proposal also targets partnerships between payment firms and virtual asset service providers, or VASPs. These arrangements would face enhanced monitoring requirements and be subject to transaction limits, reflecting mounting concern about how digital asset activity flows through the country's payment rails.
Regulators want to slow the pace of new entrants while they build stronger guardrails around crypto-linked payments.
Why It Matters
The move signals a more cautious posture from Philippine authorities as crypto adoption continues to grow across Southeast Asia. By imposing caps on transactions and demanding closer scrutiny, the central bank aims to reduce exposure to money laundering, fraud and other illicit activity that can travel through payment intermediaries connected to virtual asset firms.
For businesses operating in the sector, the changes could reshape how they structure relationships with licensed payment operators. Companies that rely on such partnerships may need to adapt to new compliance obligations if the rules are adopted.
Key elements of the proposal include:
- A temporary pause on registering new payment system operators
- Enhanced monitoring for arrangements involving VASPs
- Transaction limits applied to crypto-linked payment activity
The proposal underscores a broader global trend of financial regulators seeking to bring digital asset activity under tighter supervision. Should the measures move forward, the Philippines would join a growing list of jurisdictions recalibrating their approach to crypto within the traditional payments framework.