The Central Bank of the Philippines (BSP) has suspended applications and licenses for virtual asset service providers (VASPs) for three years. This is stated in the memorandum.

According to the document, its “modified approach” seeks to strike a balance between promoting innovation in the financial sector and keeping potential risks “at a manageable level.”

Starting September 1, the regulator is introducing a temporary moratorium on new requests from VASP. Renewal of existing licenses is possible subject to company reassessment. The reason for the change was “recent market developments”.

“[Это] “Central Bank Governor Felipe Medalla is strategically shifting the focus to assessing the overall performance of existing BSP-registered VASPs and their impact on their risk management systems, financial services and financial inclusion program, and contributing to the realization of the Digital Payments Transformation Roadmap.” .

According to BSP, as of June 30, there were 19 VASP licensees in the country. Five are not working, one organization ceased operations in January.

Earlier, Binance CEO Changpeng Zhao revealed the bitcoin exchange’s plans to obtain permission from BSP to operate in the Philippines. Later, the Infrawatch PH think tank urged country authorities to launch an investigation into the platform for illegal marketing campaigns.

Recall that in July Medalla opposed the ban on cryptocurrencies. However, the head of the Central Bank noted the environmental damage of bitcoin and the high volatility of digital assets.

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