The BSP ordered LYKA to halt its operation as an Operator of Payment System.
On Friday, the Bangko Sentral ng Pilipinas (BSP) had issued an order to social media platform LYKA to halt its operation as an Operator of Payment System (OPS).
In a statement, the BSP had issued an order to LYKA to suspend its operation as an OPS.
In addition, the BSP had invited LYKA to register with the Bangko Sentral ng Pilipinas as provided under Republic Act No. 11127 or the “National Payment Systems Act (NPSA)”.
LYKA, as defined by the BSP, was a Hong Kong-based social media platform launched in the Philippines which allowed its users to purchase, exchange, and use “Gift cards in Electronic Mode” or “GEMs” as payment for goods and services.
“The Monetary Board has ascertained that these activities make Lyka an OPS and is thus required to register with the BSP, which is needed before it is allowed to continue with its OPS activities,” the BSP said in a statement.
The operators of LYKA, according to the BSP, have already expressed their willingness to register with the Bangko Sentral ng Pilipinas as an OPS.
The BSP also reminded companies operating a payment system to comply with the requirement under Republic Act No. 11127 and BSP Circular No. 1049 to register with the Bangko Sentral ng Pilipinas.
Also, the BSP advised the public to transact only with BSP-registered OPS that were officially listed on the BSP’s website.
According to the BSP, the public may view the list through this link in order to confirm if an OPS was duly registered with the Bangko Sentral ng Pilipinas.
You can read the full statement through this link.