Philippines Central Bank to Halt Applications for New Virtual Asset Firms for Three Years

The Philippines’ central bank said it will stop processing applications window for new virtual asset services providers (VASP) licenses for three years starting Sept. 1.

The Bangko Sentral will conduct a reassessment based on market developments, according to a memo dated Aug. 10.

The central bank said it «aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.»

Applications that have completed Stage 2 of the bank’s licensing process by Aug. 31 will be processed and assessed as normal. Any with incomplete requirements will be closed.

Existing Bangko Sentral-supervised financial institutions that wish to expand crypto operations will still be able to apply for a VASP license.

The Bangko Sentral revealed in 2021 that around 53% of Filipino adults are unbanked, suggesting there is a significant use case for cryptocurrency services in the country to spur financial inclusion.

Read more: South African Central Bank to Look at Regulating Crypto

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