BSP Closely Monitors Local Axie Infinity SLP Merchants System

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By Shiela Bertillo

The Bangko Sentral ng Pilipinas (BSP) is closely monitoring Axie Infinity in regards to how players and merchants are using and exchanging the cryptocurrency Smooth Love Potion (SLP) as a form of payment and the extent of the number of merchants accepting it as mode of payment. In a statement, the central bank is looking into Axie Infinity’s possible classification as an operator of payment system (OPS), and if it is, Axie Infinity or Sky Mavis, the developers of the game, should register as one.

Is Axie Infinity a VASP?

According to the central bank, Axie Infinity owned by Vietnam-based Sky Mavis, “is not considered as VASP” or virtual asset service provider.

The BSP Circular No. 1108 or the Guidelines for VASPs issued in January this year, recognizes the evolving virtual asset systems or markets, and the risks associated with it because of its underlying features — anonymity, volatility of prices and “velocity” of transactions. BSP considers VASPs as money service businesses, when fiat money is converted into virtual assets, and are still transferable and be used for payment. (Read more: Cryptocurrency Tax Philippines | Play-to-Earn | Axie Infinity Tax 101 by PDAX and Taxumo)

Consequently, the BSP said Axie Infinity is not a VASP because the scope of BSP Circular No. 1108 “excludes digital units of exchange used as in-game tokens, such as the implementation of SLP within Axie Infinity.” (Read More: Are NFTs and Gaming Tokens Subject to Same Rules as All of Crypto in the Philippines?)

“However, we’re also actively monitoring the level of merchant acceptance of SLP as a form of payment for goods/services, which may fall within the activities of an OPS,” BSP stated. (Editor’s emphasis: Note that the BSP is pertaining to Sky Mavis and not to the merchants.)

Axie’s SLP is an uncapped token earned as rewards by Axie Infinity players through battle or adventure mode. The token is also needed to breed Axies, the game’s Non-fungible Token (NFT), and a major avenue to earn actual money from playing the game. The SLP can be exchanged to fiat through local exchanges and through peer-to-peer. (Read More: How to Trade SLP, AXS, ETH to PHP Instantly Through BloomX)

An OPS are entities that provide cash-in service, bills payment service, and other conveniences such as a payment gateway, platform provider, payment facilitator, and merchant acquirer that allows merchants to accept payments, in cash or digital form.

According to Manila Bulletin’s report on their email interview with the BSP, the central bank said that once it concluded that the players of Axie Infinity are using and exchanging SLP as a form of payment, it will require Vietnam-based Sky Mavis, it’s owner, or its local partner, to register with the BSP as an OPS under the Circular No. 1049 which provides the rules for the registration of OPS. Otherwise, the game should stop operating in the country.

Last month, the BSP suspended Lyka, a popular social media platform, as well as its local partner Digital Spring, on the grounds of unauthorized operation as a payment system. (Read More: BSP Orders Lyka to Stop Operating, Invites Registration)

Lyka allows its users to purchase, exchange, and use Gift cards in Electronic Mode or GEMs as payment for goods and services.

However, in an earlier opinion article, Luis Buenaventura II, crypto entrepreneur, author, and NFT Artist, stated that Axie Infinity may not be  an OPS. He explained that because Sky Mavis does not actively solicit and instead focuses on encouraging people to play the game, then they are not an OPS. “Sky Mavis only wants people to play its game, and it’s the gamers themselves that are soliciting other gamers. This is a critical distinction that puts it outside of the BSP jurisdiction, because the game platform itself doesn’t engage in the conversion of peso to crypto, and only accepts payments within its own ecosystem.”

This article is published on BitPinas: BSP Closely Monitors Local Axie Infinity SLP Merchants System

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[…] This article is published on BitPinas: BSP Closely Monitors Local Axie Infinity SLP Merchants System […]

[…] This article is published on BitPinas: BSP Closely Monitors Local Axie Infinity SLP Merchants System […]

[…] The Bangko Sentral ng Pilipinas (BSP) mentioned that it’s carefully monitoring Axie Infinity with reference to how gamers and retailers are utilizing and exchanging Clean Love Potion (SLP) as a type of cost. The central financial institution can be wanting into the chance that Axie Infinity could also be categorised as an operator of cost system (OPS), and whether it is, Axie Infinity or Sky Mavis ought to register as one. (Learn Extra: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] The Bangko Sentral ng Pilipinas (BSP) said that it is closely monitoring Axie Infinity in regards to how players and merchants are using and exchanging Smooth Love Potion (SLP) as a form of payment. The central bank is also looking into the possibility that Axie Infinity may be classified as an operator of payment system (OPS), and if it is, Axie Infinity or Sky Mavis should register as one. (Read More: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] This issue was also addressed by the BSP last month saying that they are closely monitoring Axie Infinity in regards to how players and merchants are exchanging SLP as a form of payment. The central bank is not considering Axie Infinity as a virtual asset service provider (VASP) but they are open to its possibility to be classified as an operator of payment system (OPS). And if it is one, the BSP is encouraging Axie Infinity or its creator Sky Mavis to register. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] This issue was also addressed by the BSP last month saying that they are closely monitoring Axie Infinity in regards to how players and merchants are exchanging SLP as a form of payment. The central bank is not considering Axie Infinity as a virtual asset service provider (VASP) but they are open to its possibility to be classified as an operator of payment system (OPS). And if it is one, the BSP is encouraging Axie Infinity or its creator Sky Mavis to register. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Accordingly last month, the Bangko Sentral ng Pilipinas (BSP) said that it is closely monitoring play-to-earn game Axie Infinity in regards to how players and merchants are using and exchanging Smooth Love Potion (SLP) as a form of payment and it is looking into Axie Infinity’s possibility to be classified as an OPS; if it is, Axie Infinity or Sky Mavis, its game developer, is encouraged to register as one. (Read More: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Moreover, the Bangko Sentral ng Pilipinas (BSP) is also closely monitoring Axie Infinity in regards to how players and merchants are using Smooth Love Potion (SLP) as a mode of payment. The central bank stated that it is looking into Axie Infinity’s possible classification as an operator of payment system (OPS), which is taxable under the proposed bill. . (Read more on: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] In the Philippines, where the majority of it’s players are situated, the game and its Vietnam-based  developers, are under the country’s regulator’s close monitoring.  […]

[…] In the Philippines, where the majority of it’s players are situated, the game and its Vietnam-based  developers, are under the country’s regulator’s close monitoring.  […]

[…] Moreover, the BSP has also had its eye set on the game in regards to how players and merchants are using Smooth Love Potion (SLP), one of Axie Infinity’s in-game tokens, as a form of payment. The possible classification as an operator of payment system (OPS) of Axie Infinity’s is taxable under the proposed bill.  (Read more on: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Concerning the VASP classification of the play-to-earn recreation the BSP additionally said final August that it’s not however contemplating to how gamers and retailers are utilizing and exchanging the SLP as a type of cost, the central financial institution is seeking to its potential classification as an operator of cost system (OPS). And whether it is, Axie Infinity is inspired by the BSP to register as one. (Learn extra on: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Regarding the VASP classification of the play-to-earn game the BSP also stated last August that it is not but considering to how players and merchants are using and exchanging the SLP as a form of payment, the central bank is looking to its possible classification as an operator of payment system (OPS). And if it is, Axie Infinity is encouraged by the BSP to register as one. (Read more on: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

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[…] Since August, the BSP has been “closely monitoring” Axie Infinity and how its players use and exchange the game’s cryptocurrency asset known as Smooth Love Potion (SLP) as a form of payment.  (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Since August, the BSP has been “intently monitoring” Axie Infinity and the way its gamers use and trade the sport’s cryptocurrency asset referred to as Easy Love Potion (SLP) as a type of fee.  (Learn extra: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Since August, the BSP has been “closely monitoring” Axie Infinity and how its players use and exchange the game’s cryptocurrency asset known as Smooth Love Potion (SLP) as a form of payment.  (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Simula Agosto, ang BSP ay ‘masusing binabantayan’ ang Axie Infinity at kung paano ginagamit ang mga players nito cryptocurrency asset ng laro na kilala bilang Smooth Love Potion (SLP) bilang anyo ng pagbayad. (Dagdag babasahin: Masusing binabantayan ng BSP ang mga lokal na Axie Infinity SLP Merchant System) […]

[…] Since August, BSP has been ‘closely monitoring’ Axie Infinity and how its players use the game’s cryptocurrency assets known as Smooth Love Potion (SLP) as a payment method. (Additional reading: BSP carefully manages Axie Infinity SLP Merchant Systems) […]

[…] On the other hand, last August, the BSP has clarified that Axie Infinity, a popular play-to-earn non fungible token (NFT) game widely played in the Philippines, is not a VASPs.However, the central bank is considering its possibility to be an operator of payment system (OPS) due to the increase of merchants accepting smooth love potion (SLP), one of the game’s token with fiat value, as mode of payment. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] Then again, final August, the BSP has clarified that Axie Infinity, a preferred play-to-earn non fungible token (NFT) recreation broadly performed within the Philippines, will not be a VASPs.Nevertheless, the central financial institution is contemplating its chance to be an operator of cost system (OPS) as a result of improve of retailers accepting easy love potion (SLP), one of many recreation’s token with fiat worth, as mode of cost. (Learn extra: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] On the other hand, last August, the BSP has clarified that Axie Infinity, a popular play-to-earn non fungible token (NFT) game widely played in the Philippines, is not a VASPs.However, the central bank is considering its possibility to be an operator of payment system (OPS) due to the increase of merchants accepting smooth love potion (SLP), one of the game’s token with fiat value, as mode of payment. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] On the other hand, last August, the BSP has clarified that Axie Infinity, a popular play-to-earn non fungible token (NFT) game widely played in the Philippines, is not a VASPs.However, the central bank is considering its possibility to be an operator of payment system (OPS) due to the increase of merchants accepting smooth love potion (SLP), one of the game’s token with fiat value, as mode of payment. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]

[…] On the other hand, the BSP clarified last August that Axie Infinity, a popular earning non-fungible token (NFT) game widely played in the Philippines, is not VASPs. However, the central bank is considering the possibility of being a payment system operator (OPS) due to the proliferation of merchants accepting Smooth Love Potion (SLP), one of the fiat-valued game’s tokens, as a payment method. (Read more: BSP is closely monitoring the local Axie Infinity SLP merchant system) […]

[…] Regarding the play-to-earn market, last August, the BSP clarified that the play-to-earn non fungible token (NFT) game Axie Infinity is not a  virtual asset service provider (VASP). However, the central bank is still considering its possibility to be an operator of payment system (OPS) due to the increase of businesses accepting smooth love potion (SLP), one of the game’s token with real money value, as a form of payment. (Read more: BSP Closely Monitors Local Axie Infinity SLP Merchants System) […]