Crypto regulation in Philippines: Check BSP’s latest VASP list
VASP licence update
The BSP has been proactively regulating digital currencies and related service providers through VASP licensing. These Virtual Asset Service Providers offer various crypto-related services, from digital wallets to exchange platforms.
The recent update added a new digital bank, GoTyme, to the VASP licence list. However, it also removed four entities, including Appsolutely Inc., the Philippine-based company linked with the now-defunct cryptocurrency LoyalCoin. The addition of GoTyme has brought the number of licensed VASPs to 14, although the majority remain tagged as inactive or non-operational. With tightening regulations and periodic updates, the BSP is keen on curating a list of active and compliant firms in the crypto space.
GoTyme has officially joined the VASP community and has been experimenting with innovative features, such as the recently introduced U.S. dollar buying and time deposit feature. Customers can invest in U.S. dollars and earn up to 5% annual interest, a unique offering within the local banking sector. It remains to be seen how the bank plans to expand into the digital asset space.
In 2020, Appsolutely Inc. was given approval by the BSP to operate as a Remittance and Transfer Company (RTC) with a Virtual Currency Exchange (VCE) Service. However, despite multiple partnerships with firms like Cebu Pacific, Lazada, and even 7-Eleven, the project slowly faded away. By 2023, Appsolutely Inc. was tagged as an inactive and non-operational VASP by the BSP.
Atomtrans Tech, another company that lost its VASP licence, partnered with Coinfirm, a London-based blockchain technology firm, in 2021. The collaboration aimed to bolster security and transparency in Atomtrans’ VASP operations. However, due to operational and financial difficulties, the company ceased its services in January 2022.
I-Remit has been serving Overseas Filipino Workers (OFWs) with its remittance services since 2001. It obtained its Electronic Money Issuer (EMI) licence in 2019 and a VCE licence in 2020. Despite its expansion to 23 countries, I-Remit was eventually classified as an inactive VASP by 2023.
Philbit aimed to offer a mobile application supporting 850 digital currencies, focusing on money-changing and remittance services. Similar to other firms, Philbit was tagged as inactive and non-operational in the BSP’s 2023 update. While the BSP currently lists 14 licensed VASPs, many are inactive or not yet operational. The central bank’s regulatory vigilance is evident as it periodically reviews these firms to ensure compliance and transparency in their activities.
Impact on crypto landscape in Philippines
The removal of these entities could indicate a stricter stance from the BSP, signalling to other VASPs that failure to comply with regulations could result in licence revocation. This move may also help rebuild trust in the Philippine crypto market by filtering out inactive or questionable players.
The BSP’s continuous updating of the VASP list strengthens the credibility of the virtual asset services market. By ensuring that only compliant and active firms hold licences, the BSP aims to foster a more secure and transparent environment for crypto transactions.
With the BSP maintaining a close watch on VASPs, the crypto industry in the Philippines is likely to see more developments, including possible new regulations or the entry of new players like GoTyme. Digital banks and crypto firms will need to adapt to remain compliant while still offering innovative services to their users.
