Philippines To Stop Issuing VASP License For Three Years
In a recent statement, the Philippines’ central bank, also called the BSP (Bangko Sentral ng Pilipinas), said it wants to stop offering new VASP (Virtual Asset Service Provider) licenses in September.
Also, this would continue for the next three years. However, it will be subject to assessment and evaluation depending on the market situation.
BSP To Stop Issuing New VASP Licenses
Chuchi Fonacier, an official at the Philippines central bank, stated that the bank would not process VASP licenses anymore. Meanwhile, the current BSFls (BSP Supervised Financial Institutions) that want to expand their offerings by adding VASP services can still apply for a license.
This also applies to noncustodial firms that want to start offering custodial services to users. However, Fonacier noted that these entities must present a Supervisory Assessment Framework.
Additionally, the bank said the latest decision is to create a balance between managing risks and promoting innovation in the country. The bank believes this will ensure that all risks do not go beyond manageable levels.
Also, the bank said that license applications that passed the bank’s stage two verification process in August could continue. Hence, it would not block their application.
Furthermore, this announcement comes after the bank issued guidelines for crypto firms and exchanges operating in the country. According to that report, the government stated that the BSP’s duty is to ensure the full protection of financial consumers in the country.
Philippines’ SEC Warns Citizens About Using Binance
Also, the BSP is to provide a safe environment that allows financial innovation to thrive. However, this should not give room for terrorist financing and money laundering activities.
The government followed the steps taken by other countries to fight crypto-related crime and regulate the crypto sector. However, local news media stated that this regulation had crippled the Philippines’ economy and crypto usage.
Recently, the country stated that it does not plan to legalize any cryptocurrency such as BTC. This is because it is not backed by any assets. Meanwhile, about 19 companies are yet to receive licenses in the country.
Last week, the country’s SEC warned citizens about using crypto platforms such as Binance. According to the regulator, Binance is not a licensed entity and hence does not have a license to operate.
According to Oliver O. Leonardo, the director of the regulator, the regulator’s evaluation and research showed that Binance is not licensed to operate in the country.
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