Virtual Asset ​​Service Provider (VASP) License in the Philippines

Planning to launch your crypto exchange, digital wallet, or other virtual asset service in the Philippines? You’ll need to secure a Virtual Asset Service Provider (VASP) license from the Bangko Sentral ng Pilipinas (BSP).

In this article, we’ll guide you through the key aspects of securing a VASP license in the Philippines, including the requirements, the application process, and what to expect when starting your digital asset business in this evolving regulatory environment.

Overview of Virtual Asset Service Provider License

What is A VASP License?

Under BSP Circular No. 1108, if your business deals with virtual assets (like cryptocurrencies, stablecoins, certain tokens) in the Philippines, you are likely considered a Virtual Asset Service Provider (VASP). 

The VASP license is mandatory if you engage in one or more of the following activities:

• Exchanging virtual assets (VA) and fiat currency.
• Exchanging between different virtual assets.
• Transferring virtual assets.
• Safekeeping and/or administration of virtual assets (custodial wallets).
• Providing services related to the issuance or sale of virtual assets.

Essentially, all platforms facilitating the exchange, transfer, or storage of digital assets for customers need to secure the BSP authorization as a VASP. 

This regulation aims to ensure security, transparency, consumer protection, and mitigate risks like money laundering within the digital asset space.

The Current BSP License Moratorium

The BSP temporarily suspended the acceptance of new VASP license applications starting September 1, 2022, for a period of three years. This is done as part of its efforts to strengthen oversight and reassess the regulatory landscape.

This pause is expected to lift around September 2025. 

(Note: Existing BSP-supervised financial Institutions seeking to add VASP services might fall under different interim rules.)

New entrants face a temporary barrier, as they cannot apply for a VASP license immediately. However, many companies are taking advantage of this period by actively preparing their applications and compliance systems to move swiftly once the BSP resumes accepting new applications.

If you want to enter the market, you must either partner with an existing licensed VASP or wait until the BSP lifts the moratorium.

Opportunities for VASP in the Philippines

The Philippines presents some exciting opportunities for VASPs, especially if you’re looking to tap into the growing digital asset market. Here’s why the country is an ideal place for your VASP business to thrive:

• Pro-Crypto Regulatory Landscape: The Bangko Sentral ng Pilipinas and other regulators have developed clear rules for VASPs. This means you can operate with confidence, knowing you’re following a forward-thinking regulatory framework. This openness to crypto creates a stable foundation for businesses to grow.
• Potential for Tokenization and DeFi Integration: You can explore offering tokenized assets, DeFi products, and staking services within a fully compliant framework. There’s room to get creative with emerging trends like NFTs, play-to-earn models, and digital identities linked to crypto wallets.
• Cross-Border Payment and Remittance Solutions: The Philippines is a hub for remittances. Integrating crypto solutions can drastically reduce transaction costs and make international payments smoother. Plus, there’s great potential for partnerships with remittance firms, neobanks, and e-wallet providers looking for more efficient ways to move money.

Applying for a VASP License in the Philippines: Requirements and Process

Requirements for Obtaining A VASP License

Getting a VASP license is a solid move if you want to operate legally and build trust in the digital asset space. However, it does come with a few important requirements. Here’s what you’ll need to get a license:

• Certificate of Authority to operate as a Money Service Business (MSB) from the Bangko Sentral ng Pilipinas
• BSP Registration
• Comply with AML and CTF rules, which means having strong anti-money laundering and counter-terrorism financing systems in place
• Set up robust internal systems for due diligence and risk management
• Follow KYC protocols, including customer identification and transaction monitoring
• Submit regular reports to the BSP, including financial statements and transaction data

How to Apply for A VASP License in the Philippines

Applying for a VASP license in the Philippines involves several steps, and getting it right from the start is crucial. The process can be complex due to strict regulatory requirements. Emerhub’s business and licensing experts can assist with navigating each step with clarity:

1. Establish A Corporation (Limited Liability Company) in the Philippines

To apply for the VASP license in the Philippines, you must have a registered legal entity in the country with the SEC. If you don’t have one, our incorporation experts will handle the company registration process on your behalf before applying for the license. This includes applying for Barangay Clearance and the Mayor’s Permit, among others.

2. Apply for BSP Approval to Establish and Operate As An MSB

Once your company is incorporated, the next step will be to secure approval from the Bangko Sentral ng Pilipinas to operate as a VASP. We’ll help you prepare and file all the necessary documents and guide you through the BSP’s requirements to make sure your application moves forward smoothly.

3. Obtain A Letter of No Objection (LNO) from BSP

Before applying for a VASP license, you’ll need a Letter of No Objection (LNO) from the BSP. Our team will prepare the application letter and supporting documents to help you secure this approval quickly.

4. Submit Application for VASP Registration

After securing the LNO, the VASP registration can be filed. We’ll handle the entire submission, including documents on your compliance policies, KYC framework, and risk management systems, all aligned with BSP requirements.

5. Approval and Issuance of VASP License

Once approved, you’ll receive your VASP license and can officially launch your services. We will continue to support you post-approval with tax compliance, reporting, and any regulatory updates to keep your business fully aligned. Currently, BSP is not accepting new applications until at least September 2025. 

Ready to set up your VASP in the Philippines? Fill out the form below. Our experts will guide you through the best approach and take care of the entire process for you.