The Bangko Sentral ng Pilipinas (BSP) is seeking to tight reporting requirements for Virtual Asset Service Providers (VASPs) to address data gaps, reduce information asymmetries, and improve oversight of these entities.
The amendments, outlined in a draft circular, would require VASPs to submit detailed reports on financial statements, transaction volumes, wallet balances, accountholder demographics, and liquidity coverage.
Submissions must be made electronically via the BSP’s Reporting Portal for VASPs, with deadlines ranging from 10 business days to 20 calendar days, depending on the type of report.
The transition to the new portal will become mandatory on 1 January 2025, although VASPs may continue using old reporting channels for MSB reports during the first two quarters of the year.
These changes align with the BSP’s broader objectives of improving the accuracy of data related to virtual assets and enhancing regulatory oversight.
A three-year moratorium on new VASP licenses, which began on September 1, 2022, aims to mitigate risks and strengthen consumer protection.
During this period, existing VASPs have been instructed to limit activities to safekeeping customer assets, as outlined in a memo issued on 7 December 2022.
As of 1 October 2024, the BSP has licensed 14 VASPs, with only seven currently operational.
These include Maya Philippines, Philippine Digital Asset Exchange (PDAX), Betur Inc. (Coins.ph), Bloomsolutions Inc., Moneybees Forex Corp., Direct Agent 5 (SurgePay), and TopJuan Technologies Corp.
Notably, two banks—UnionBank of the Philippines and GoTyme Bank—are among the licensed VASPs.
Non-compliance with the updated reporting requirements will result in enforcement actions as outlined under the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI).
The draft circular is currently open for feedback, with submissions due by 13 December 2024.
Featured image credit: Edited from Freepik
