While many believe the Philippines may become a new cryptocurrency hub, that dream may be cut short in the meantime as the country’s central bank has announced a three-year pause in accepting new applications from virtual asset service providers ( VASP).
According to a memorandum signed by Chuchi Fonacier, a financial supervisory officer at Banko Sentral ng Pilipinas (BSP), its goal is to balance promoting innovation in finance and managing the risks associated with virtual assets (VA). He wrote:
“The Bangko Sentral recognizes that while AVs offer opportunities to promote greater access to financial services at reduced cost, they also pose a number of risks that can undermine financial stability.”
For this reason, the normal application period for new VASP licenses will be closed for three years, starting on September 1, 2022. According to Fonacier, this will be subject to change depending on the evolution of the market.
However, applications that have already passed the second phase of the process before August 31, 2022 will continue with the following evaluation phases. Nonetheless, those that submit incomplete requirements before the set date will be rejected. Meanwhile, entities classified as Supervised Financial Institutions by the BSP can still apply for a VASP license if they are rated as stable..
Already in June, Binance CEO Changpeng Zhao said that the crypto exchange had been trying to obtain the VASP license from the BSP so that the crypto platform can expand its services in the country.. Apart from this, the executive highlighted that they are also seeking to obtain an electronic money issuer (EMI) license in the Philippines.
In a recent interview with Cointelegraph, Binance Asia-Pacific head Leon Foong said that they have already submitted the relevant documents to acquire the licenses, but cannot provide any other details as they may be confidential.. Foong noted that they are optimistic about their entry into the country.
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