Philippine central bank updates licensed VASP list

The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has released an updated list of licensed Virtual Asset Service Providers (VASPs). The update marks a new development, with GoTyme, a Filipino digital bank, newly added to the roster, while four other firms had their licenses removed due to inactivity or ceased operations. This revision signals BSP’s intent to bolster the integrity of the Philippine digital asset market by retaining only compliant, active service providers.

GoTyme bank secures VASP license

GoTyme’s recent inclusion as a licensed VASP adds a notable player to the Philippine digital asset landscape. This new license comes on the heels of GoTyme’s release of an innovative banking feature that enables users to buy U.S. dollars and place funds in a time deposit account, yielding up to 5% annual interest. This product is a unique addition to the local financial sector, reflecting the bank’s mission to cater to a tech-savvy customer base interested in flexible financial options.

Although GoTyme has yet to outline specific plans for leveraging its VASP license, the bank’s entry into the digital currency space suggests potential advancements in digital asset offerings. Like many VASPs in the BSP’s current list, its status remains “inactive,” meaning its operational activity in virtual asset services is not yet underway. However, with its track record of introducing progressive financial products, GoTyme’s role in the local digital currency ecosystem could become pivotal in the future.

Removal of VASP licenses to four entities

Among the four entities stripped of their VASP licenses, Appsolutely Inc., the company behind LoyalCoin, is perhaps the most prominent. In 2018, Appsolutely partnered with several household names in the Philippines, including Cebu Pacific, Lazada, and 7-Eleven, promoting LoyalCoin as a blockchain-based loyalty and rewards system. The company was classified as “inactive” in a 2023 BSP update.

Atomtrans Tech, another company affected by BSP’s licensing update, exemplifies the challenges faced by smaller VASPs. The firm had aimed to reinforce its position in the digital currency space through a strategic partnership with Coinfirm, a London-based blockchain technology company, in 2021. This collaboration was geared toward enhancing transparency and security within Atomtrans’ VASP operations. Despite these efforts, operational and financial difficulties led Atomtrans to cease its services by early 2022.

As for I-Remit, the company initially expanded its services by obtaining an Electronic Money Issuer (EMI) license in 2019, followed by a Virtual Currency Exchange (VCE) license in 2020. These developments allowed I-Remit to establish subsidiaries and broaden its reach to 23 countries, catering to a global client base. However, despite its historical footprint and continued relevance in the remittance industry, I-Remit found maintaining an active presence in the digital currency space challenging. Classified as an inactive VASP in 2023, I-Remit’s removal from the BSP list may mark a shift in its focus away from virtual assets. 

Meanwhile, Philbit Money Changer and Remittance Services Inc., known for its aspirations to provide a multi-functional mobile app supporting over 850 digital currencies, was also stripped of its VASP license. Philbit’s app aimed to facilitate both currency exchange and remittance services, a unique proposition in the Philippines’ digital currency market. However, operational challenges and failure to activate its VASP functionalities eventually led the BSP to mark Philbit inactive.

Implications of BSP’s VASP list update

The BSP’s licensing framework is designed to safeguard the interests of digital currency users by establishing a trusted market environment. With GoTyme now on board, the updated list comprises 14 licensed VASPs, though several remain classified as inactive. As the central bank continues to evaluate VASP licenses, firms will be expected to demonstrate not only regulatory compliance but also the ability to offer reliable services.

The central bank’s oversight of VASP activities includes various services, such as exchanging different types of virtual assets, facilitating their transfer, and the safekeeping or administration of these assets or tools that provide asset control. In 2021, the BSP enhanced security protocols for digital currency, requiring VASPs to meet licensing standards and adhere to anti-money laundering regulations. While the central bank has noted the advantages of digital currencies—like enabling quicker, more affordable remittances—it also cautions the public about associated risks, including volatile values, potential for criminal misuse, and cybersecurity concerns.

BSP’s commitment to digital currency oversight

With its latest VASP update, the BSP reinforces its dedication to regulatory vigilance in the face of a rapidly evolving digital currency landscape. The Philippine Central Bank has emphasized that its proactive approach to VASP licensing is meant to protect consumers and create a stable market for digital assets. As VASP applications are set to resume in 2025, the digital currency industry may see a new wave of players seeking entry, each required to meet the standards that the BSP has underscored through these recent removals.

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