The Philippines halts virtual asset provider license applications

Many believe the Philippines can Become a new crypto hubThat dream may be shattered in the meantime as the country’s central bank has announced a 3-year gap from accepting new Virtual Asset Service Provider (VASP) applications.

A step Memorandum Signed by Suchy Fonacier, Financial Supervisory Officer of Bangko Sentral ng Philippines (BSP), they aim to promote innovation in finance and manage risks associated with virtual assets (VAs). She wrote:

“Banco Central recognizes that while VAs provide opportunities to promote greater access to financial services at lower costs, they also pose various risks that could undermine financial stability.”

Because of this, the normal application window for new VASP licenses will close for three years from September 1, 2022. According to Fonacier, this is subject to change depending on developments in the market.

However, applications that have already passed the second stage of the process before August 31, 2022, will continue to the next evaluation steps. However, applications incomplete before the due date will be rejected. Meanwhile, institutions classified as BSP Supervised Financial Institutions can apply for a VASP license if they are assessed as stable.

Related: Philippines SEC warns public not to invest with Financiers

In June, Binance CEO Changpeng Zhao revealed that the crypto exchange VASP seeks to obtain a license Crypto platform from BSP to expand its services in the country. Apart from this, the executive highlighted that they are also looking to obtain an e-money issuer (EMI) license in the Philippines.

In a recent interview with Cointelegraph, Binance’s head of Asia-Pacific, Leon Foong, said that they have already submitted the documents related to obtaining the licenses, but could not provide any other details as they may remain confidential. Fung noted that they Confidence about their entry within the country.