The Bangko Sentral ng Pilipinas (BSP) has extended indefinitely its moratorium on the issuance of new licenses to virtual asset service providers (VASPs), citing risks linked to digital currency exchanges.
“The extension of the moratorium considers the heightened risks associated with virtual assets and underscores the BSP’s commitment to protect consumers and uphold the stability and integrity of the financial system,” the central bank said over the weekend.
The BSP also issued an advisory warning the public to exercise due diligence and avoid transacting with unlicensed VASPs. These firms facilitate the exchange or transfer of virtual assets (VAs), which include cryptocurrencies and other digital tokens that can be traded, transferred, or used for payment.
The freeze, first imposed in 2022 for three years, will now be subject to periodic review. The BSP said the pause will allow it to strengthen monitoring, surveillance, and enforcement as it adapts to developments in the global and domestic virtual asset market.
“This approach ensures that the BSP can effectively address emerging risks and respond to evolving trends in the domestic and global VA landscape,” it added.
The decision follows the Philippines’ removal from the Financial Action Task Force (FATF) gray list in February, with regulators pledging to sustain reforms that reinforce anti-money laundering and counter-terrorism financing safeguards.
“The BSP remains committed to ensuring that VASPs operate in full compliance with regulations and international standards, and implement secure, transparent, and accountable practices,” the central bank said.
The last major update to BSP rules came in 2021, when guidelines were expanded to cover VASP registration and licensing, following FATF’s 2019 call for a risk-based approach to virtual assets.
