The Bangko Sentral ng Pilipinas (BSP) has extended its moratorium on the issuance of new licenses for virtual asset service providers (VASPs) indefinitely, while simultaneously warning the public against engaging with unregistered or unauthorized VASPs.
Approved by the Monetary Board, the extension reflects heightened regulatory caution over the risks associated with virtual assets (VAs), including fraud, money laundering, and threats to the stability of the financial system. VAs broadly include digital assets such as cryptocurrencies, while VASPs are entities that facilitate their exchange, transfer, or safekeeping.
The central bank clarified that the moratorium—first implemented in 2022—will remain in effect until further notice and will be subject to periodic review in response to evolving industry developments. During this time, the BSP will focus on bolstering its monitoring, surveillance, and enforcement frameworks to manage risks emerging in the fast-evolving VA ecosystem.
In tandem with the moratorium, the BSP issued a public advisory urging individuals and businesses to refrain from transacting with unlicensed VASPs. The central bank reiterated that only duly registered entities are authorized to operate in the country and advised the public to verify a provider’s status via the BSP’s official website (www.bsp.gov.ph). Suspicious activities may also be reported to the Technology Risk and Innovation Supervision Department via email (trisd@bsp.gov.ph) or telephone at (+632) 8811-1277 local 2960.
This regulatory stance comes in the wake of the country’s removal from the Financial Action Task Force (FATF) grey list in February this year, a milestone achieved through sustained efforts to align with international standards on anti-money laundering (AML), counter-terrorism financing (CTF), and counter-proliferation financing.
The BSP reaffirmed its commitment to preserving this progress by intensifying its scrutiny of VASP operations and ensuring they operate within a secure, transparent, and accountable regulatory environment.
The indefinite extension of the licensing freeze, combined with a firm advisory against unregulated players, underscores the BSP’s dual-pronged approach: protect consumers while safeguarding the integrity of the country’s financial system amidst rapid digital innovation.
