BSP Will Not Accept New Crypto License Applications for 3 Years After Sept

BSP Will Not Accept New Crypto License Applications for 3 Years After Sept

by August 12, 2022

The Bangko Sentral ng Pilipinas (BSP) announced that it will no longer be accepting applications for new Virtual Asset Service Provider (VASP) licenses for the next three years starting 1 September 2o22.

The central bank said that this will be subject to re-assessment based on market developments.

According to the memorandum by Deputy Governor Chuchi G. Fonacier, applications that have completed or passed Stage 2 of the licensing process on or before 31 August 2022 will be processed and assessed for completeness and sufficiency of documentation and information submitted.

BSP will also look into the compliance with the licensing criteria to operate as a VASP based on its Stage 3 requirements.

Applications with incomplete requirements as of 31 August 2022 will be returned and tagged as “closed”. BSP will no longer process these applications further.

Meanwhile, existing BSP – supervised financial institutions who wish to expand operations by offering VASP services, may still apply for a VASP license provided that they have a Supervisory Assessment Framework (SAFr) composite rating of at least “stable’r.

This includes non-custodial VASPs who wish to offer safekeeping and/or custodial services.

Due consideration shall be given to the financial institution’s risk management systems including its client suitability assessment and onboarding processes, as well as financial consumer education and awareness programmes in the evaluation of its application.

“The Bangko Sentral aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.


In this light, the Bangko Sentral recognies 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.”