BSP Orders Payment System Operator ‘Lyka’ to Stop Operation Until Registered

Bangko Sentral ng Pilipinas (BSP) orders digital payment operator Lyka to halt operations in the meantime while still not registered with the central bank.

BSP governor Benjamin Diokno that the social media platform with digital payments offers services that allows app users to “purchase, exchange, and use gems (digital gift cards) as payments for goods and services,” services and features that fall under services that are regulated by the BSP.

Lyka is a mobile application that touts itself as a social media platform, and was launched by a Hong Kong-based firm.

Furthermore, Lykas services and features makes the app an OPS, (operator of payment service), according to the Monetary Board, thus requiring the app to register with the BSP.

Republic Act (RA) No. 11127 or the National Payments System Act requires OPS to register with the BSP.

Meanwhile, the central bank chief said that executive from Lyka expressed their interest and willingness to register with the central bank.

Diokno encouraged the public to report unregistered OPS for the protection of the welfare of the public. (GFB)