Breaking: BSP Extends Ban on New Crypto Exchange VASP License Applications

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The Bangko Sentral ng Pilipinas (BSP) has extended its moratorium on the issuance of new licenses for virtual asset service providers (VASPs), three years after the freeze was first announced.

In a memorandum dated Aug. 20, 2025, the BSP said the decision was based on continuing concerns over consumer protection and cybercrime. The moratorium, first imposed in 2022, will remain in effect beginning Sept. 1, 2025, subject to reassessment based on local and global developments.

The BSP said ongoing assessments showed risks that outweighed the benefits of lifting the ban, despite acknowledging the role of blockchain and digital platforms in financial services. The regulator clarified in earlier guidance that existing BSP-supervised institutions, such as banks with “stable” ratings under its Supervisory Assessment Framework, may still apply for VASP licenses.

The move comes as the Securities and Exchange Commission (SEC) rolled out new rules for crypto service providers earlier this year. On May 30, the SEC finalized its Crypto Asset Service Provider (CASP) framework, in which it expanded the definition of “marketing” to cover most public-facing communications, including social media posts, events, advertisements, and airdrops. (Read more: SEC Defends Blocking of Unregistered Crypto Exchanges, Cites Ample Warning for Filipinos)

The SEC said the rules, which took effect on July 5 through Memorandum Circulars No. 4 and 5, aim to curb scams and misleading promotions while tightening disclosure requirements. In a livestream, SEC Assistant Director Paolo Ong said the measures apply primarily to licensed platforms, while separate rules will govern financial advisory services. (Read more: SEC Flags 10 Unregistered Crypto Exchanges, Eyes Website Blocking)

FULL TRANSCRIPT:

MEMORANDUM NO. M-2025-031

To   : All Applicants for an Authority to Operate as a Virtual Asset Service Provider (VASP)
Subject : Continued Enforcement of the Moratorium on the Issuance of New Licenses for VASP

The Monetary Board, in its Resolution No. 848 dated 20 August 2025, approved the continued enforcement of the moratorium on the issuance of new licenses for VASP.

The Bangko Sentral recognizes the advancements in financial services brought about by digital platforms and technologies, particularly on the use of distributed ledgers such as blockchain technology. However, ongoing assessments have determined continued concerns on consumer protection and increasing issues on cybercrime.

In this regard, the moratorium on the issuance of new licenses for VASP will continue starting 01 September 2025, subject to reassessment based on global and local developments.

For guidance and implementation.

(Signed)
ELI M. REMOLONA, JR.
Governor

AUG 29 2025

This is a developing story: Breaking: BSP Extends Ban on New Crypto Exchange VASP License Applications

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