BSP revokes license of crypto service provider

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has revoked the license of Atomtrans Tech Corp., a virtual asset service provider (VASP) in the Philippines.

The Monetary Board cancelled the certificate of registration of Atomtrans in a resolution dated Feb. 1, the BSP said on Monday.

Atomtrans was previously allowed to operate as a remittance and transfer company with remittance agent and virtual currency exchange service, or now broadly classified as a VASP.

Established in 2017, Atomtrans operates as an ATC payment system as well as an ATC digital currency exchange. It was approved by the BSP to extend its business to the crypto-industry with ATC remittance in September 2019.

Similar measures have been taken by the Monetary Board against other VASPs. In December last year, the BSP revoked the licenses of Coinville Phls Inc. and Bexpress Inc. for failing to comply with anti-money laundering regulations.

VASPs refer to entities that offer services or engage in activities that provide facility for the transfer or exchange of virtual assets – any type of digital unit that could be digitally traded or transferred, and can be used for payment or investment purposes.

The BSP issued a three-year moratorium on the grant of licenses to new VASPs in August 2022 amid varied risks that may undermine financial stability.

The Monetary Board had approved a modified approach to the grant of VASP license to maintain the integrity and stability of the financial system and strengthen consumer confidence in the digital ecosystem.