The Philippines' central bank said it will stop processing applications for new virtual asset services providers (VASP) licenses for three years starting Sept. 1.
- The Bangko Sentral will conduct a reassessment based on market developments, according to a memo dated on Wednesday.
- The central bank said it "aims to strike a balance between promoting innovation in the financial sector and ensuring that associated risks remain within manageable levels."
- Applications that have completed stage 2 of the bank's licensing process by Aug. 31 will be processed and assessed as normal. Any with incomplete requirements will be closed.
- Existing Bangko Sentral-supervised financial institutions that wish to expand crypto operations will still be able to apply for a VASP license.
- The Bangko Sentral said last year that around 53% of Filipino adults are unbanked, suggesting there is a significant use case for cryptocurrency services in the country to spur financial inclusion.
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