BSP To Stop Accepting New VASP Applications Starting September 1

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BSP said that the regular application window for new VASP licenses will be closed for 3 years.

BSP — The Bangko Sentral ng Pilipinas said that the regular application window for new VASP (virtual asset service provider) licenses will be closed for 3 years starting September 1, 2022.

BSP
Photo source: Philstar

In Memorandum Order M-2022-035 signed by BSP Deputy Governor Chuchi G. Fonacier on August 10, Fonacier said that the regular application window for new VASP licenses will be closed for 3 years starting September 1.

Fonacier, who is currently the central bank’s Officer-in-charge, said that the central bank will re-assess market developments during the ban on new VASP licenses.

According to a report on ABS-CBN News, the central bank said that this is part of its approved modified approach to the grant of VASP licenses and it involves granting of new VASP license only to existing BSFIs (BSP supervised financial institutions) and the closure of the regular application window for new VASP licenses for 3 years.

VASP
Photo source: Yugatech

The central bank added that the existing BSP supervised financial institutions with strong risk management systems, client suitability assessment, and customer onboarding practices, as well as intensified financial consumer education may still apply for a VASP license.

BSP Governor Felipe Medalla said that the recent market developments have necessitated the adoption of a modified VASP licensing approach.

READ ALSO: PayMaya and Novi Hold BSP License As Virtual Asset Service Providers

The central bank also said that applications that have passed stage 2 of the licensing process on or before August 31 will be processed and assessed, adding that incomplete applications will be considered “closed”.

Earlier, the central bank closed the application for digital banks in August 2021 after granting licenses to 6 players to first assess the overall impact of the technology to the financial market.

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