Crypto regulation in the Philippines is drawing fresh attention after reports claimed the country was introducing a new 12-month freeze on virtual asset service provider (VASP) licenses.
Michael Mislos, founder and editor-in-chief of BitPinas, pushed back against that interpretation, saying the claim is incorrect.
In a post on X, Mislos clarified that the Bangko Sentral ng Pilipinas (BSP) has already paused approvals for new VASP licenses indefinitely since last year. He also pointed out that the Securities and Exchange Commission’s (SEC) Crypto Asset Service Provider (CASP) framework is separate and is not subject to the same pause.
The distinction matters because the 12-month suspension currently being discussed by the BSP applies to new Operator of Payment System (OPS) registrations, not VASP license applications.
VASP Approvals Were Already Paused
Mislos’ clarification directly addresses reports describing the latest BSP proposal as a new 12-month freeze on crypto licensing. According to Mislos, the BSP’s VASP license approvals have been paused indefinitely since 2025.
His earlier reporting on BitPinas documented the BSP’s August 2025 decision to continue its moratorium on issuing new VASP licenses. The central bank said the moratorium would continue from September 1, 2025, subject to reassessment based on local and global developments.
The BSP cited consumer-protection concerns and increasing cybercrime issues when it extended the moratorium. That means the latest reports should not be interpreted as the BSP suddenly adding another 12 months to a VASP licensing freeze.
Instead, the existing VASP moratorium remains in place while the central bank considers a separate 12-month pause affecting payment-system operators.
Philippines VASP Freeze Clarified: What the 12-Month Pause Covers
The new 12-month proposal involves Operators of Payment Systems, or OPS. Under the BSP’s draft rules, the central bank would suspend the acceptance and processing of new OPS registration applications for 12 months while it reviews its payment-system classification and licensing framework.
Applications submitted before the suspension could continue to be evaluated, but the BSP would not issue approvals or rejections during the 12-month period.
The proposal would also prevent entities from starting activities that require OPS registration unless separately authorized. The draft is therefore focused on the country’s payment infrastructure rather than creating a new VASP licensing moratorium.
Why the Confusion Matters for Crypto
The confusion comes from the draft’s proposed treatment of VASPs within payment arrangements.
The BSP proposal would require supervised institutions handling merchant-acquiring services for regulated VASPs to use direct merchant arrangements. These relationships would also face enhanced due diligence, monitoring, transaction limits, and settlement controls.
VASPs are among the merchant categories the BSP considers higher risk for payment purposes. As a result, crypto companies could still feel the effects of the new payment rules even though the 12-month OPS registration pause is not a new VASP licensing ban.
This creates two separate regulatory developments:
| Regulation | Status | What It Covers |
| BSP VASP license moratorium | Already in effect | New BSP VASP licenses |
| Proposed OPS freeze | Proposed for 12 months | New payment-system operator registrations |
| BSP VASP payment controls | Proposed | Merchant acquiring and payment arrangements involving VASPs |
| SEC CASP framework | Separate framework | Crypto-asset services under SEC jurisdiction |
Table 1. The separate Philippine regulatory measures behind the current crypto licensing confusion.
BSP’s VASP Moratorium Was Extended in 2025
The BSP’s existing VASP restriction dates back to 2022, when the central bank imposed a three-year moratorium on new applications. In August 2025, the BSP decided to extend the moratorium rather than allow it to expire.
Memorandum No. M-2025-031 stated that the continued moratorium would begin September 1, 2025, and remain subject to reassessment based on local and global developments. The BSP cited consumer protection and cybercrime concerns.
The policy applies to new VASP licenses. It does not mean that existing licensed VASPs were automatically shut down. The BSP has continued to maintain a list of licensed VASPs operating under its regulatory framework.
What the Latest Philippines Crypto News Actually Means
The key point is that the Philippines did not suddenly impose a new 12-month freeze on VASP licenses. The BSP already extended its VASP licensing moratorium in 2025, and it remains in effect, subject to reassessment.
The newly reported 12-month pause concerns OPS registrations. At the same time, the proposed payment rules could create additional compliance requirements for crypto companies involved in payment arrangements, particularly around merchant identification, monitoring, transaction limits, and direct relationships with regulated VASPs.
That distinction is the key correction to the reports circulating about the latest Philippine regulatory proposal.
What Comes Next
The BSP’s proposed OPS suspension still needs to complete the regulatory process before it becomes effective. The central bank is reviewing its payment-system framework while considering tighter controls for payment arrangements involving VASPs.
For crypto businesses, the existing BSP VASP licensing moratorium remains the more relevant restriction on new license applications.
For payment companies, the proposed 12-month OPS pause could create a separate barrier to entering the Philippine payment market.
Mislos’ clarification also highlights the need to distinguish between the BSP’s VASP framework and the SEC’s CASP regime as Philippine regulators continue to divide responsibilities across the crypto sector.
What This Means for You: Existing BSP-authorized VASPs can continue operating, but users should check a platform’s regulatory status with the BSP, SEC, or AMLC where relevant. This is especially important for crypto users in the Philippines, where different regulators oversee different types of crypto-related services.
Separately, the BSP has proposed a 12-month pause on new Operator of Payment System (OPS) registrations. The proposal would also add stricter payment controls for regulated VASPs, including direct merchant relationships, stronger due diligence, monitoring, and transaction and settlement limits. Crypto businesses should also check whether their activities fall under the SEC’s separate Crypto-Asset Service Provider (CASP) framework.
