SyCipLaw Highlights Key Trends and Developments in Latest Fintech Law Guide

December 20, 2024

The Philippine chapter of the Lexology In-Depth: Fintech Laws and Regulations, published by Law Business Research, is now available on the Lexology website. Co-authored by SyCipLaw Partner John Paul V. de Leon, along with Associates Christopher A. Capulong, Patrick Edward L. Balisong, Franco Luis G. Lopez, and Patricia E. Ramos, the guide offers valuable insights into the evolving fintech landscape in the Philippines.

The authors discuss the proactive role of the Bangko Sentral ng Pilipinas (BSP) in supporting technology integration within the financial sector. The BSP has developed a comprehensive regulatory framework aimed at enhancing access to financial services through fintech solutions. While encouraging innovation via regulatory sandboxes, the BSP also exercises caution regarding the introduction of new fintech products.

A noteworthy development highlighted in the guide is the BSP's announcement to lift the moratorium on digital banking licenses effective January 1, 2025. This move will permit the establishment of ten operational digital banks, with four additional licenses available.

The guide also notes the impressive growth in digital payments in the Philippines, which rose from 30.3% in 2021 to 52.8% in 2023. To further support this growth, the BSP has imposed a moratorium on fee increases for electronic fund transfers and will introduce a new regulatory framework for Merchant Payment Acceptance activities starting July 1, 2024. This framework will require registration with the BSP for all new operators.

For more information, please visit https://www.lexology.com/indepth/fintech-law/philippines.