The Philippines’ central bank has proposed a 12-month freeze on new registrations for payment-system operators while tightening controls on payment arrangements involving virtual asset service providers. The Bangko Sentral ng Pilipinas (BSP) said in a draft circular that it would suspend acceptance and processing of applications for operators of payment systems to allow a holistic review of its taxonomy and licensing framework. Applications filed before the suspension would still be reviewed, but the BSP would not approve or deny them until the pause ends. Entities would also be prohibited from beginning activities that require OPS registration unless the regulator grants authorization. According to Cointelegraph, the proposal is part of a broader effort to reassess how payment-system operators are licensed and supervised, with the central bank seeking feedback on the draft before any final decision is made.

The draft would also require BSP-supervised institutions that provide merchant acquisition services to work with regulated virtual asset service providers through direct merchant arrangements. Those relationships would be subject to enhanced due diligence, closer monitoring, transaction and settlement limits, and other risk-based controls. The requirement would apply to virtual asset firms that must be licensed, registered or authorized by the BSP, the Philippine Securities and Exchange Commission, or another authority. VASPs are listed alongside gambling businesses, gaming providers, adult-oriented businesses and money service businesses in the draft. If finalized, the circular would take effect 15 days after publication. Cointelegraph said it contacted the BSP for further comment but did not receive a response before publication.