Bangko Sentral ng Pilipinas (central bank of Philippines) has made it clear that they will no longer accept crypto license applications over the next three years. This is the central bank that regulates the Philippines crypto industry.
Philippines Bans Crypto License Application
Bangko Sentral ng Pilipinas (the Philippine central bank) announced Wednesday it would stop accepting applications for new Virtual Asset Service Providers (VASP), licenses after three years.
In a memorandum dated Aug. 10, the central bank explained that it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”
The central bank added, “The Bangko Sentral recognizes that as VAs [virtual assets] offer opportunities to promote greater access to financial services at reduced costs, they also pose varied risks that may undermine financial stability,” elaborating:
The regular VASP licensing application window will be shut down for three years starting on 01/09/2022. Market developments may require a reassessment.
The central bank noted that existing BSP-supervised financial institutions that wish to expand operations by offering crypto services, including custodial services, may still apply for a VASP license provided that they have a Supervisory Assessment Framework composite rating of at least “stable.”
The Bangko Sentral ng Pilipinas’ website shows 19 approved virtual asset service providers as of June 30.
Felipe Medalla (BSP Governor) stated that although he did not wish to ban cryptocurrency, cryptocurrencies should not be banned. However, crypto assets are better than cryptocurrencies. Investors should not invest money that they can’t afford in crypto.
How do you feel about the Philippines accepting three years’ worth of crypto licensing applications? Please comment below.
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