Kevin Helms
A student of Austrian economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the intersection of finance and cryptography.
Philippines to stop accepting crypto license applications for 3 years, says regulator – Regulation Bitcoin News
The Central Bank of the Philippines, Bangko Sentral ng Pilipinas, has announced that it will stop accepting crypto license applications for three years, starting next month. The central bank is the primary regulator of the crypto sector in the Philippines.
The Philippines will stop accepting crypto license applications
The Philippine central bank, Bangko Sentral ng Pilipinas, announced on Wednesday that it will stop accepting new Virtual Asset Service Provider (VASP) license applications for three years.
In a note dated August 10, the central bank explained that it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels”.
The central bank added: “Bangko Sentral recognizes it as VAs [virtual assets] offer opportunities to promote greater access to financial services at reduced costs, they also pose varied risks that can undermine financial stability,” elaborates:
In this connection, the normal application window for new VASP licenses shall be closed for three (3) years, starting on 1 September 2022, subject to a new assessment based on market developments.
The central bank noted that existing BSP-supervised financial institutions that want to expand their business by offering crypto services, including custody services, can still apply for a VASP license provided they have a composite rating of the Supervisory Assessment Framework of at least “stable.”
The Bangko Sentral ng Pilipinas website lists 19 approved virtual asset service providers as of June 30.
Last month, BSP Governor Felipe Medalla said he does not want cryptocurrencies to be banned, but they should be called cryptoassets, not cryptocurrencies. He warned investors not to put money they can’t afford to lose into crypto.
What do you think about the Philippines taking a three-year break from accepting crypto license applications? Let us know in the comments section below.
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