While many believe the Philippines could become a new crypto hub, that dream may be shattered in the meantime as the country’s central bank announced a 3-year hiatus from accepting new Virtual Asset Service Provider (VASP) applications.
According to a memorandum signed by Chukchi Fonassier, a financial supervision officer at Banco Central ng Pilipinas (BSP), they aim to promote innovation in finance and manage the risks associated with virtual assets (VAs). she wrote:
“Banco Central recognized that while VAs provide opportunities to promote greater access to financial services at lower costs, they also carry various risks that could undermine financial stability.”
Because of this, the normal application window for new VASP licenses will be closed for three years starting September 1, 2022. According to Fonasier, this will be subject to change based on developments in the market.
However, applications that have already passed the second stage of the process before August 31, 2022, will continue for the next evaluation stages. Despite this, those with incomplete requirements before the stipulated date will be rejected. Meanwhile, entities classified as BSP supervised financial institutions are still able to apply for a VASP license if they are rated as stable.
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Back in June, Binance CEO Changpeng Zhao expressed that the crypto exchange is looking to obtain a VASP license from the BSP so that the crypto platform can expand its services in the country. In addition, the executive highlighted that they are also looking to obtain an e-money issuer (EMI) license in the Philippines.
In a recent interview with Cointelegraph, Binance’s Asia-Pacific head, Leon Phung, stated that he has already submitted the relevant paperwork to obtain the license, but cannot provide any other details as they are confidential. can be. Phung said he looked forward to his entry into the country.
