Philippians will stop accepting crypto license applications for 3 years

Jamal Molla
Written By Jamal Molla
Jamal is an English teacher and freelance writer with a passion for NFTs, metaverse, crypto and technology.

The financial institution regulator in the Philippines, Bangko Sentral NG Pilipinas, has notified the public that it has stopped allowing cryptocurrency license applications for the next three years, starting from September. The central bank is the leading financial regulator of the cryptocurrency industry and has decided that the Philippines will stop accepting crypto license applications for 3 years.

The central bank announced on Wednesday its intention to stop accepting the new Virtual Asset Service Provider (VASP) license application. In a memo dated August 10, 2022, the regulator explained it “aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels.”

Furthermore, the bank also added, “The Bangko Sentra recognizes that as Vas (virtual assets) offer opportunities to promote greater access to financial services at reduced costs, they also pose varied risks that may undermine financial stability.”

The bank indicated, “In this regard, the regular application window for new VASP licenses shall be closed for three (3) years, starting September 01, 2022, subject to reassessment based on market development.”

The Zenith bank also highlighted that current BSP-supervised financial institutions that want to increase their operations in providing crypto-related services can still opt for a VASP license application as they possess a Supervisory Assessment Framework stable rating.

On its website, the Bangko Sentra ng Pilipinas displayed 19 approved asset providers. BSP Governor Felipe Medalla noted that he doesn’t want an outright cryptocurrency ban. Furthermore, he advised investors never to put their assets into something they aren’t willing to lose.

Nevertheless, NFTs are now a legal way for documents to be served in UK courts. The High Court of England and Wales issued an order approving court in the United Kingdom to serve court papers using non-fungible token (NFT) transactions on the blockchain

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