The Central Bank of the Philippines has announced a one-year suspension from accepting new virtual asset provider (VASP) apps. This step has been deemed an action to curb the frenzy of cryptocurrencies in this developing nation.
In accordance with a memo signed by Chuchi Fonacier, a financial supervisory official of the Banko Sentral ng Pilipinas (BSP), They aim to ensure that they balance the need for innovations in finance while also addressing the risks that come with digital assets. She wrote:
“The Bangko Sentral recognizes that as VAs offer opportunities to promote greater access to financial services at reduced costs, they also pose varied risks that may undermine financial stability.”
This means that the window to apply for new VASP licenses will be shut for 1 year starting in September. 1st 2022. According to Fonacier, this is dependent on market developments.
However, those who have already completed the second step of the process prior to August. 31st, 2022, will proceed to the next evaluation stages. However, applications that have insufficient requirements prior to the scheduled date are likely to be denied. In addition, those classed as BSP-supervised financial Institutions can still submit a request for a VASP license provided that they are rated stable.
In the month June, Binance Chief Executive Officer Changpeng Zhao stated that the cryptocurrency exchange is looking to obtain permission to use the VASP program through the BSP in order that the platform can extend its services to the Philippines. Additionally, the executive also stated the fact that they’re also trying to obtain the E-money issuer (EMI) license in the Philippines.
Gargi Sinha is working as Senior Journalist at Confea. She has completed her Masters in Journalism from Delhi University. She has interest in crypto and blockchain technology.