Philippines central bank proposes 12-month freeze on new payment operators, files crypto with gambling in risk rules

The Bangko Sentral ng Pilipinas has proposed freezing new payment-system operator registrations for 12 months under a draft circular on payment risk oversight.

Under the draft, the central bank would place crypto firms in the same risk classification as gambling and adult-oriented businesses. It would also suspend acceptance and processing of applications for Operators of Payment Systems to conduct a “holistic review” of its taxonomy and licensing framework. If finalized, the rules would take effect 15 days after publication, and the BSP is currently accepting feedback. Applications submitted before the suspension could continue to be evaluated, but the regulator would not approve or deny any of them until the pause ends. Entities would be barred from starting activities that require OPS registration unless authorized otherwise.

A companion provision reaches into how banks handle crypto merchants. BSP-supervised institutions offering merchant acquisition services would have to handle regulated VASPs through direct merchant arrangements, subject to enhanced due diligence and monitoring, transaction and settlement limits and other risk-based controls. The requirement covers virtual asset firms licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission, or another authority.

The draft’s risk classification lists VASPs alongside gambling businesses, gaming providers, adult-oriented businesses and money service businesses, a grouping that signals how the regulator now views crypto payments risk. The BSP did not respond to a request for comment on the draft.

The proposal follows earlier action by the Philippine SEC, which flagged dYdX and six other crypto platforms as unauthorized, and marks a cautious turn in Philippine crypto regulation toward the payments sector.