The Bangko Sentral ng Pilipinas announced it will stop the process of granting licenses to virtual asset service providers for 3 years. According to a memorandum by the Bangko Sentral, the Monetary Board took a modified approach to establish a balance between encouraging financial innovation and managing related risks.
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The memorandum says the bank recognizes that digital assets offer high accessibility to financial services at less costs, however, they include risks that can affect financial stability.
From Sept 1, 2022, the Bank will halt providing licenses for three years. The CB mentions the decision is a subject to review in accordance with the developments in the sector.
Previously, CB governor Felipe Medalla stated that the institution has no plans to ban crypto in the country.