The Bangko Sentral ng Pilipinas will not approve any new virtual asset service providers (VASPs) in the next three years.
According to the memorandum signed by Deputy Governor Chuchi Fonacier, companies will not be able to apply for a VASP license beginning September 1, 2022.
The memorandum stated that this is being implemented to review the current local virtual asset market in the Philippines.
The Banko Sentral ng Pilipinas (BSP) defines virtual assets as digital units of exchange with a centralized administrator, decentralized with or without an administrator or created and/or obtained by computing and manufacturing effort.
So what exactly is a VASP and what classifies you to be one?
Virtual Asset Service Providers (VASP) are those who facilitate the trade of virtual assets for fiat currencies, the exchange of virtual assets for virtual assets, and the safekeeping or transfer of virtual assets. This includes the exchange of digital assets for services or products. If your company uses this platform, you may need to obtain a VASP license.
Will this memorandum be in effect immediately?
According to the BSP, those who have completed Stage 2 of the license process by August 31, 2022 will be processed and assessed. Those who have unfinished criteria as of that date will be returned and marked as “closed.”
The BSP will no longer accept new applications beyond that date.
Existing BSP-supervised institutions (such as banks) who want to expand into VASP services can still apply for a license “if they have a Supervisory Assessment Framework (SAFr) composite rating of ‘stable’,” according to the BSP.
What does this mean?
This essentially implies that if you want to establish a platform in your business that accepts digital assets like cryptocurrencies, you’ll have to wait three years until BSP makes an update (unless you’ve previously applied and are on Stage 2). While some are not pleased with his recent revelation, many have expressed disappointment. According to one Facebook user, the current decision only allows big players to obtain a VASP license, leaving tiny players with a significant disadvantage.
What do you think of the recent move by the BSP?