BSP extends freeze on new cryptocurrency exchange licenses

The Bangko Sentral ng Pilipinas has extended indefinitely its moratorium on granting new licenses for virtual asset service providers, or VASPs.

The move highlights what the BSP said were heightened risks tied to virtual assets and underscores its duty to protect consumers and preserve financial stability.

Virtual assets refer to digital forms of value such as cryptocurrencies that can be traded, transferred, or used for payment.

VASPs are businesses that enable these transactions, including cryptocurrency exchanges and digital wallet providers.

The BSP said it will periodically review the moratorium while strengthening its monitoring and enforcement systems to keep pace with global and domestic developments in digital finance.

The regulator added that the extension also supports the Philippines’ commitment to anti-money laundering, counter-terrorism financing, and counter-proliferation financing efforts after the country’s removal from the Financial Action Task Force’s grey list in February 2025.

The BSP emphasized that registered VASPs must comply with strict security, transparency, and accountability measures to reduce risks of fraud, scams, or illicit financial activity.

In a public advisory, the central bank urged Filipinos to exercise caution, conduct due diligence, and avoid dealing with unauthorized virtual asset providers.

To verify whether a VASP is registered, the BSP encouraged the public to consult the official list on its website at www.bsp.gov.ph.

The BSP also asked the public to report unlawful or suspicious virtual asset activities through its:

TECHNOLOGY RISK AND INNOVATION SUPERVISION DEPARTMENT

E-mail: trisd@bsp.gov.ph

Telephone: (+632) 8811-1277 local 2960

or

CONSUMER PROTECTION AND MARKET CONDUCT OFFICE

E-mail: consumeraffairs@bsp.gov.ph

Telephone: (+632) 8708-7087

For ordinary consumers, this extension is significant because it means that only vetted and regulated VASPs can legally operate, offering stronger protection against scams and fraud in the fast-growing but risky cryptocurrency market.

By tightening oversight, the BSP aims to safeguard public funds and ensure that digital finance develops in a secure and trustworthy manner.