Philippines Hits Pause on New Crypto Licenses: What’s Next for VASPs?

The Central Bank’s Decision

This isn’t just any ordinary announcement; the Bangko Sentral ng Pilipinas (BSP) has put a three-year freeze on new Virtual Asset Service Provider (VASP) applications. According to Chuchi Fonacier, an official at the BSP, this tough love is meant to strike a balance between innovation and the risks that virtual assets (VAs) can bring to financial stability. Because apparently, managing risks is all the rage these days.

What This Means for Aspiring Crypto Entrepreneurs

If you’re an aspiring crypto entrepreneur, this news might hit harder than a hacker’s denial of service. Starting September 1, 2022, if you hadn’t completed the VASP application process before then, it’s lights out for you. However, if you’re one of the select few who made it past the second stage before the deadline, congratulations! You can keep your dreams alive—at least for now. Just make sure your paperwork is spick and span.

What Happens to Existing Applications?

For those applications that are already under review, fear not! They’ll continue through the process. But if you’re sitting on an incomplete application, don’t get too cozy. The BSP will not be extending any favors, and incomplete applications will be promptly rejected. So, party time for serious applicants, but a sad violin for the rest!

Entities That Can Still Apply

Not all is lost, though. Entities already classified as BSP Supervised Financial Institutions can still apply for a VASP license. That is, if they have about as much stability as a rock in a hurricane. So, if you’ve got a solid foundation, you might still get your chance at the crypto big leagues.

Binance and the Hopeful Future

Speaking of crypto big leagues, Binance’s CEO Changpeng Zhao has been eyeing the VASP license as if it were a shiny gem. With hopes of expanding services and snagging an e-money issuer (EMI) license, Zhao and his team are not letting a three-year silence dampen their spirits. Leon Foong, Binance’s head of Asia-Pacific, mentioned that all necessary documents have been submitted, but they’re maintaining a poker face on the details. Optimism seems to be their guiding star!

In Conclusion

While the three-year hiatus may seem like a long time in crypto years, it’s crucial for the BSP to navigate these turbulent waters carefully. As the world of virtual assets continues evolving, all eyes will be on the Philippines to see if they can ride out this storm. In the meantime, crypto enthusiasts can only wait and strategize for when the gates re-open.