The central bank stated virtual asset service providers pose a great risk but will allow existing businesses to continue operations or expand.
VASPs that have submitted an application and completed the second stage of approval prior to August 31 will still be processed and considered for approval. Additionally, VASPs previously approved will be able to continue operation and submit for renewal as needed. However, if applications do not meet the final stage of requirements from the central bank by August 31, the window for approval will lock shut for the aforementioned three years.
Meanwhile, if a VASP looks to expand its operations, including non-custodial services, it will need to have a rating of “stable” composite from the Bangko Sentral of the Philippines Supervisory Asset Framework and be currently listed as a supervised financial institution.
“The Bangko Sentral aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels,” stated the central bank in the release.
However, the Bangko Sentral reiterated that “they also pose varied risks that may undermine financial stability.”