The Philippines may pause new crypto payment operator registrations for 12 months as regulators prepare stricter controls for crypto-related payment services.

The Bangko Sentral ng Pilipinas (BSP), the country's central bank and primary regulator of payment systems, has proposed a 12-month suspension on new Operator of Payment System (OPS) registrations. During the freeze, the central bank would also review and potentially revise its licensing regime and classification system.

The move comes as the Philippines has ranked among the world's leading markets for digital-asset adoption, and it follows the BSP's earlier regulatory tightening in the sector, including its 2021 move to cap the number of VASP licenses it issues. The new proposal extends that scrutiny from crypto exchanges themselves to the payment rails that serve them.

Stricter Controls for Crypto Payment Services

Under the draft rules, regulated institutions serving virtual asset businesses through merchant acquiring services would face new requirements. Covered institutions would be required to sign direct agreements with virtual asset service providers and strengthen their customer verification systems before offering payment services.

Institutions would also be expected to conduct enhanced due diligence and to monitor transactions with these businesses on a regular basis. In addition, the draft proposes appropriate limits on transactions and settlements, giving institutions better tools to manage the risks associated with payment activity involving crypto assets.

The proposed 12-month freeze would affect new OPS applications while the BSP conducts a comprehensive review of its licensing regime. Applications submitted before the suspension takes effect would still be considered, though the draft states that final decisions would be made only after the suspension period ends, meaning applicants may wait longer for approval. The pause would also give the BSP time to reassess the criteria applied to payment operators.

The BSP has invited public comments on the proposed changes. If adopted, the rules would take effect 15 days after official publication in the government gazette.

Expanded Oversight of Virtual Asset Service Providers

The proposed controls apply to virtual asset service providers (VASPs) regulated by an authority — whether the BSP, the Philippine Securities and Exchange Commission (SEC), or another regulator. The draft places VASPs in one of the higher-risk business categories, alongside gambling, gaming, adult businesses, and money service businesses.

The approach reflects regulators' growing focus on payment risks tied to digital assets, with stronger monitoring expected to help identify unusual transactions more quickly. It also aligns with international standards from the Financial Action Task Force (FATF), which treats virtual assets as a higher-risk area requiring enhanced due diligence under its global anti-money-laundering recommendations.

The Philippines has already moved against several unregistered crypto platforms. In April 2026, the Philippine SEC issued an investor alert naming dYdX, Pacifica, Aevo, Ostium, Orderly, Deriv, and gTrade, stating that these platforms were not registered or authorized, and warned Filipino investors against using them. That action underscored the regulator's shift toward unlicensed crypto services.

The BSP's current proposal takes a different angle, targeting payment channels rather than exchanges alone. It addresses the institutions that provide services supporting virtual asset businesses. Transaction limits could curb risks from large or unusual transaction flows, while improved monitoring may reinforce compliance across interconnected financial services.

The proposal remains subject to the public feedback process, and some requirements could be modified before the final rules are published. If approved, the framework could significantly change how crypto businesses obtain payment services and impose additional compliance obligations on regulated financial institutions. Stakeholders and industry participants will be watching whether the final rules soften the transaction limits or clarify how existing OPS licensees are treated during the review period.

The draft circular, Draft Circular on Regulations to Strengthen Integrity Controls in Payment Transactions, is available on the BSP website.