The central bank of the Philippines, the Bangko Sentral ng Pilipinas (BSP), is looking to impose new restrictions. It aims to limit the use of electronic wallets, or e-wallets, and other digital payment platforms for online gambling.
The institution shared a draft circular with industry stakeholders. In it, the BSP proposes a daily cap on fund transfers to digital gambling platforms. It also calls for stricter due diligence by e-game operators. From the sector up to July 25, the central bank is gathering comments.
In early July, the central bank flagged its intention to introduce stricter rules. The news came as the Philippines’ Department of Finance announced plans to tax the country’s online gaming sector. It also signaled the possibility of introducing stricter policies on access to digital gambling platforms.
The authorities’ stance comes amid growing calls in the Philippines for changes to the online gaming sector. These include tighter access restrictions, new taxes, and limits on using e-wallets for gambling. There have even been calls for a complete restriction.
The BSP proposed that the daily amount a person can transfer to online gaming accounts should not exceed 20 percent of their average daily balance, according to several local media outlets.
For processing online gambling-related transactions, the central bank would also require payment service providers to set a daily time window not exceeding six hours daily.
BSP-regulated entities should also set a threshold for what the bank termed heavy usage of services for online gambling purposes. Payment operators must implement a 24-hour cooling-off period when a user reaches the limit.
Earlier this month, the BSP said it was taking a collaborative approach to crafting the circular. The goal is to ensure that the final policy strikes a balance. It aims to protect consumers while also preserving access to digital payments for licensed businesses.
