The Philippine central bank stated in a memo that starting in September, the regular application period for new licenses to provide services for virtual assets will be closed for three years.
According to the regulator, it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”
According to the memo dated August 10, institutions supervised by central banks that want to expand their services to include safe-keeping can still apply.
The regular window’s closure will be reconsidered in light of market changes.
By August 31, applications that have completed Stage 2 of the bank’s licensing procedure will be handled and evaluated as usual. Applications that do not meet the criteria will be rejected.
Financial institutions currently under central bank supervision that want to increase their crypto operations can still seek a VASP license.
According to the central bank, roughly 53% of Filipino adults don’t have bank accounts. This means that there is an ample market opportunity for cryptocurrency services to help the country become more financially inclusive.
As of the end of June, 19 companies were listed on the central bank’s website as offering virtual asset services, including cryptocurrencies.
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