BSP Proposes 12-Month Payment Registration Pause

The Bangko Sentral ng Pilipinas (BSP) has proposed a 12-month suspension on accepting and processing new applications to register as an operator of a payment system. The measure, currently a draft, aims to allow the central bank to review its existing framework for payment systems and licensing. If finalized, the proposed circular would temporarily halt new registrations for operators of payment systems (OPS). Applications submitted before the suspension takes effect could still undergo evaluation, but the BSP would withhold final approval or denial until the 12-month pause concludes. Companies would also be prohibited from commencing activities requiring OPS registration during this period unless granted separate authorization. Existing registered operators are not affected by the draft proposal and would continue their operations. The proposed rules also introduce tighter controls for payment arrangements involving virtual asset service providers (VASPs). BSP-supervised institutions providing merchant acquisition services would be required to establish direct contractual relationships with regulated VASPs, rather than using layered payment facilitators.