Even though many think that the Philippines can be a new crypto hub, that dream might be shattered meanwhile because the country’s central bank announced a 3-year hiatus from accepting new virtual asset company (VASP) applications.
Based on a memorandum signed by Chuchi Fonacier, an economic supervision official in the Banko Sentral ng Pilipinas (BSP), they try to balance the promotion of innovation in finance and handling the risks connected with virtual assets (VAs). She authored:
“The Bangko Sentral sees that as VAs offer possibilities to advertise greater use of financial services at reduced costs, additionally they pose varied risks that could undermine financial stability.”
Due to this, the standard application window for brand new VASP licenses is going to be closed for 3 years, beginning on Sept. 1, 2022. Based on Fonacier, this is susceptible to change based on developments on the market.
However, applications that already passed the 2nd stage from the process before August 31, 2022, continuously the following assessment steps. Regardless of this, individuals with incomplete needs prior to the set date is going to be rejected. Meanwhile, entities that are called BSP Supervised Banking Institutions continue to be able to try to get a VASP license if they’re rated as stable.
Related: Philippine SEC cautions the general public to not invest with Binance
In June, Binance Chief executive officer Changpeng Zhao expressed the crypto exchange is thinking of getting the VASP license in the BSP so the crypto platform can expand its services in the united states. Aside from this, the manager highlighted that also they are searching to obtain the e-money issuer (EMI) license within the Philippines.
Inside a recent interview with Cointelegraph, Binance’s mind of Asia-Off-shore, Leon Foong, stated they have already posted the appropriate documents to get the licenses but cannot provide every other details as they might be private. Foong noted that they’re positive regarding their entry in to the country.
