BSP Imposes Ban on VASP License Application

The Bangko Sentral ng Pilipinas will not approve any new virtual asset service providers (VASPs) in the next three years.

According to the memorandum signed by Deputy Governor Chuchi Fonacier, companies will not be able to apply for a VASP license beginning September 1, 2022.

The memorandum stated that this is being implemented to review the current local virtual asset market in the Philippines.

The BSP defines virtual assets as digital units of exchange with a centralized administrator, decentralized with or without an administrator or created and/or obtained by computing and manufacturing effort.

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The central bank classifies cryptocurrencies as a type of virtual asset.

Virtual Asset Service Providers (VASP) are those that facilitate exchange between virtual asset and fiat currencies, virtual asset to virtual asset, custody or transfer of virtual assets.

Is it effective immediately? The BSP said those who have passed Stage 2 of the licensing process on or before August 31, 2022 will be processed and assessed. Those with incomplete requirements as of that date will be returned and tagged as “closed”.

After that date, the BSP will no longer process new applications.

Still, existing BSP-supervised institutions (like banks) that wish to expand to VASP services may still apply for a license “provided they have a Supervisory Assessment Framework (SAFr) composite rating of ‘stable’,” the BSP added.

Who are the VASPs in the Philippines?

The following is the current list of virtual asset service providers in the Philippines

Global exchange Binance said it is acquiring a license in the Philippines. GCash said it is offering crypto in the Philippines soon, but since it is currently a BSP-supervised institution, it means they can still apply even after the deadline.

This is a developing story: BSP Imposes Ban on VASP License Application

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.