Bangko Sentral ng Pilipinas proposes tighter payment and crypto rules

The Bangko Sentral ng Pilipinas (BSP) has proposed new regulations to tighten controls on payment transactions and cryptocurrency usage within the Philippines. The central bank is seeking industry feedback on a draft circular aimed at increasing transparency and traceability in payment chains.

Under the proposal, payment providers would be required to identify the actual merchants and ultimate beneficiaries behind transactions, preventing them from using intermediaries to obscure the flow of funds. While layered payment arrangements involving intermediaries would still be permitted, financial institutions must maintain sufficient visibility into all parties involved to prevent fraud, money laundering, and other illicit activities.

Additionally, the BSP has proposed a 12-month suspension on new registrations for payment system operators. The central bank also plans to enforce stricter oversight for cryptocurrency-related merchant arrangements, including enhanced due diligence, transaction limits, and settlement controls for virtual asset service providers.