The Philippines Ceases to Accept Cryptocurrency Licenses Applications
The Central Bank of the Philippines (Bangko Sentral Pilipinas) made an important announcement about the decision not to accept all new applications for a VASP (virtual asset service provider) license for three years.
The memorandum outlined the Central Bank’s goal. The main goal is to strike a balance between stimulating innovation in the financial sector and providing everything necessary to keep all risks under control. The bank also emphasized: “The Bangko Sentral recognizes that as VAs [virtual assets] offer opportunities to promote greater access to financial services at reduced costs, they also pose a variety of risks that may undermine financial stability.”
As a result, it can be understood that now the standard procedure for obtaining new VASP licenses is not available for a three-year period. The start date is September 1, 2022, with the possibility of reassessment based on market development. In this way, the Central Bank shows its commitment to maintaining close supervision of the rapidly developing Cryptocurrency Licenses landscape.
Eligibility for Expanding Crypto Services by Existing BSP-Supervised Financial Institutions
The Philippines’ central bank, Bangko Sentral ng Pilipinas, is encouraging the responsible growth of cryptocurrency license Philippines services. Existing financial institutions under BSP supervision can apply for a Virtual Asset Service Provider (VASP) license to offer crypto services, including custody, provided they maintain a “stable” Supervisory Assessment Framework rating.
As of June 30, the BSP website lists 19 approved virtual asset service providers, reflecting the sector’s growth. BSP Governor Felipe Medalla recently advocated calling cryptocurrencies “Cryptocurrency Licenses” and cautioned investors to only risk what they can afford to lose in the volatile crypto market. This balanced approach aims to protect investors while fostering innovation in the crypto space.
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