Image credit: Shutterstock
The Philippines’ central bank has proposed a 12-month freeze on new payment-system operator registrations while it reviews how firms in the sector are classified, licensed and supervised.
The Bangko Sentral ng Pilipinas proposal would also tighten merchant-payment rules involving regulated crypto companies, requiring banks and other supervised institutions to apply more direct oversight when serving virtual asset service providers.
New OPS Applications Would Stop for 12 Months
Under the draft circular, the BSP would stop accepting and processing new applications to register as an Operator of a Payment System, or OPS, for one year.
Applications filed before the suspension begins could continue through evaluation, but the central bank would not approve or reject them until the moratorium ends. Applicants also could not begin regulated OPS activities during the pause unless separately authorized.
Existing registered operators would not be required to stop operating. The BSP said the temporary freeze would allow it to review its OPS taxonomy, licensing framework and related risk controls.
Regulated Crypto Firms Face Tighter Merchant-Payment Controls
The same proposal places regulated virtual asset service providers among businesses subject to tighter controls when using merchant-acquiring services.
BSP-supervised institutions would generally need direct merchant relationships with covered VASPs rather than routing them through multiple payment intermediaries. They would also apply enhanced due diligence, closer transaction monitoring and risk-based transaction, settlement, and exposure limits.
The requirements would apply only to virtual asset firms holding the licenses, registrations or other authorizations required by the BSP, Securities and Exchange Commission or another relevant Philippine authority.
QR Payments Would Require Unique Merchant Identification
The draft also calls for a centralized database covering merchants that accept QR payments. Payment providers would need to identify the actual merchant behind each transaction and the entity ultimately entitled to receive the proceeds.
Shared accounts or QR channels could continue in some cases, but transactions would require unique merchant identifiers, so activity can be monitored separately. Existing layered arrangements would receive up to 12 months to review and address deficiencies.
The proposed freeze is not yet active. The BSP is collecting feedback on the draft, and any final circular would take effect 15 days after publication. The 12-month suspension would begin only after those final rules take effect.
