Philippines BSP Draft Circular Proposes 12-Month Freeze on New Payment System Operators
Bangko Sentral ng Pilipinas released an exposure draft proposing a 12-month freeze on new Operator of Payment System registrations while it reviews taxonomy and licensing. Banks would deal only with licensed VASPs, and a National QR Code Merchant Database is planned. Rules would take effect 15 days after publication if approved.
E
Editor
Sep 7, 2026 · 2mo ago
2 min read77 views
The Bangko Sentral ng Pilipinas has released a draft circular proposing a 12-month freeze on new Operator of Payment System (OPS) registrations while it conducts a holistic review of OPS taxonomy and licensing. Philstar (dateline 7 September, 12:00 a.m. Philippine local — quoted separately, not averaged) and BusinessWorld stamp the same draft’s risk-based control push.
This remains an exposure draft. If approved, the rules would take effect 15 days after publication, and the OPS freeze would then run 12 months from effectivity, Philstar writes.
OPS freeze
Under the draft, BSP would suspend acceptance and processing of new OPS applications for 12 months. Applications received before the freeze would continue to be evaluated, but none would be approved or denied until the pause ends. During the freeze, entities cannot begin activities requiring OPS registration unless BSP gives separate approval.
VASP rails and high-risk merchants
Banks and regulated payment providers would maintain direct relationships only with licensed Virtual Asset Service Providers approved by the BSP, SEC, or other approved authorities. Unregistered and offshore crypto platforms would be blocked.
Licensed VASPs are listed among high-risk merchants — alongside casinos/gambling, certain gaming providers, lawful adult-oriented businesses, and money service businesses — facing enhanced due diligence, closer monitoring, and settlement limits proportional to risk, Philstar and BusinessWorld stamp.
Layered arrangements: 6 + 6
For existing layered arrangements, institutions would have six months from effectivity to review merchant relationships and another six months from completing that review to remediate deficiencies. Relationships still noncompliant after 12 months would face enforcement, Philstar writes.
National QR Code Merchant Database
The draft proposes a National QR Code Merchant Database covering merchant identities, registration and licensing details, payment providers, settlement accounts, owners, and risk classifications. An interim secure repository would be required within 90 calendar days of effectivity; the full database within 12 months, with active records migrated and validated within 15 months, Philstar stamps.
24-hour incident reporting
Material fraud or scam incidents, sanctions breaches, cybersecurity or data-access breaches, unlicensed activity, and illegal merchant activity would be reported within 24 hours of detection, with a complete incident report due within five business days (or an interim report if the investigation cannot finish in time), Philstar writes.
Democrats are pushing a CLARITY Act provision directing regulators to set conflict-of-interest standards for vertically integrated crypto firms, citing FTX/Alameda-style structures, while Republicans warn the language could be weaponized by a future Democratic president. Sen. Cory Booker is negotiating wording with Sens. Lummis and Boozman ahead of next week’s cloture vote. Ethics language and bank opposition to stablecoin yield remain open.
Nasdaq is investing $100 million in Payward, the parent of crypto exchange Kraken, through its venture arm, valuing the company at $21 billion, according to Bloomberg via Wu Blockchain. The capital injection deepens a March strategic partnership aimed at tokenized-equities trading, settlement, and custody infrastructure.
Treasury Secretary Scott Bessent urged the Senate to advance the CLARITY Act, warning that walking away would forfeit enhanced crypto national-security tools and signal the U.S. is ceding digital-asset leadership. The Sept. 15 vote is cloture on the motion to proceed to H.R. 3633 — it needs 60 votes and is not final passage. The tone shifts from July’s market-structure urgency to a national-security frame.
