Bangko Sentral ng Pilipinas announced that for 3 years, they wouldn’t approve any Virtual Asset Service Provider (VASP)license application; the tenure begins in September. A memorandum issued on Aug 10, 2022, stated that the decision is a step to establish a balance between encouraging innovation in the financial sector and managing rising risks.
The central bank believes digital assets’ besides offering better access to financial services at affordable cost, are also posing threats.
The central bank said that financial institutions in the Philippines could apply for a license to offer cryptocurrency services—including custody—provided their composite rating is “stable.”.
