The Central Bank of the Philippines (BSP) recently announced that the freezing measures for new licenses for cryptocurrency and virtual asset service providers (VASP), originally scheduled to expire this September, will be indefinitely extended. This decision came as a surprise to crypto businesses and investors who were anticipating regulatory relief.
The freeze policy was initially implemented in September 2022 for a period of three years. However, according to the latest resolution of the Monetary Board of the central bank, the temporary suspension has now been officially upgraded to an indefinite freeze. The BSP stated that this move is to address the increasing risks in the virtual asset sector, emphasizing the need to strengthen regulation with a cautious attitude to protect consumer rights and the stability of the financial system. This means that in the short term, the Philippines will no longer approve any new cryptocurrency exchanges or virtual asset service institutions.
In its statement, the central bank noted: "BSP will periodically assess this policy, but will not open new license applications until the related risks are adequately controlled." This shows that even after regulatory adaptability is enhanced, there is no clear timetable for reopening the market.
It is noteworthy that in February this year, the Philippines was just removed from the "grey list" of the International Anti-Money Laundering Organization FATF. At this time, the central bank's increased regulation clearly aims to convey to the international community its determination to combat money laundering, terrorism financing, and illegal capital flows, with virtual asset trading institutions being the current focus of high-risk control.
This policy shift also brings multiple market risk warnings: investors' funds may be frozen or unable to be withdrawn due to the lack of a legal platform; tighter regulation may stimulate the activity of the black market, increasing transaction risks; news of the license freeze may cause short-term severe fluctuations in coin prices; and if unlicensed platforms continue to operate, investors may face legal disputes and compliance accountability.
It can be said that the Philippine crypto market is entering a dual dilemma of "strong regulation + market uncertainty," and investors need to be highly vigilant about the risks accumulating in the current environment.
