The Philippines halts virtual asset provider license applications

The Philippines halts virtual asset provider license applications

Many believe the Philippines could become a crypto hub. However, the central bank of the Philippines announced that it will be taking a three-year break from accepting applications for new virtual asset service providers (VASP) in the Philippines.

A memorandum signed at the Banko Sentral ng Pilipinas by Chuchi Fonacier (a financial supervisor official at the Banko Sentral ng Pilipinas) states that they seek to balance innovation in finance with managing the risks associated virtual assets (VAs). She wrote:

“The Bangko Sentral acknowledges that although VAs can promote greater access and lower costs to financial services, they also present risks that could undermine financial stability.

The normal application window to obtain new VASP licenses will close for three years beginning Sept. 1, 2022. Fonacier says that this could change depending on market developments.

Applications that have passed the second stage before August 31, 2022 will be allowed to continue to the next stages of assessment. However, applicants who have not completed the requirements by the deadline will be denied. If they are stable, entities that have been classified as BSP Supervised financial Institutions can still apply for a VASP licence.

Related: The Philippine SEC warns the public against investing with Binance

Changpeng Zhao, Binance CEO, stated that the crypto exchange wants to obtain the VASP license of the BSP in order to expand its services in the Philippines. The executive also stated that they are looking to obtain the e-money license (EMI) in the Philippines.

Leon Foong, Binance’s Asia-Pacific head, stated that they had submitted all necessary paperwork to obtain the licenses. However, he could not provide other details because they might be confidential. Foong said that they are optimistic about their entry to the country.

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