The Bangko Sentral ng Pilipinas (BSP) has just ordered Lyka to stop its operations as an Operator of Payment System (OPS).
“It has come to our knowledge that Lyka, a social media platform launched in the Philippines by a Hong Kong-based company, allows its users to purchase, exchange, and use Gift cards in Electronic Mode or GEMs as payment for goods and services.”
BSP Governor Benjamin Diokno
Diokno mentioned that the BSP ordered Lyka to suspend its activities as an OPS and invited the company to apply for registration before being allowed to resume.
This is done in accordance to the Republic Act No. 1127 or The National Payment Systems Act (NPSA). Additionally, BSP Circular No. 1049. provides the Rules and Regulations on the Registration of Operators of Payment System.
Through registration, the BSP is able to oversee the payment system of an OPS. This ensures that it functions safely, efficiently, and consistently with the BSP’s objectives of consumer protection and financial stability.
OPS that are required to register but are found to be be operating without registration shall be directed to comply with the registration requirements of Circular No. 1049. Those that fail to comply may be ordered to stop operations until the OPS registers with the BSP.
“The operators of Lyka have already expressed their willingness to register with the BSP as an OPS,” said Diokno.
The BSP reminded entities operating a payment system to comply with the requirement under the NPSA and BSP No. 1049 to register.
The BSP has a list of the registered entities here.