The Bangko Sentral ng Pilipinas (BSP) just announced that it’s ordering Lyka, a popular social media platform, to stop its OPS operations.
Lyka, a social media platform by a Hong Kong-based company, allows its users to purchase, exchange, and use gift cards in electronic mode (popularly known as GEMs by its users) as an exchange for real-life goods and services.
BSP‘s monetary board said that such activities make Lyka an Operator of Payment System (OPS), which requires them to have a BSP registration to operate.
This is why the central bank ordered Lyka to stop its operations as an OPS and encourage them to make the proper application to continue offering such services.
This suspension is in line with the Republic Act No. 11127 or The National Payment Systems Act (NPSA). It’s also in pursuant of the BSP Circular No. 1049 for the rules and regulations on the Registration of Operators or Payment System.
Once properly registered as an OPS operator, the BSP can oversee Lyka’s payment system to ensure it’s safe, efficient, reliable, and in line with the central bank’s objective of consumer protection and financial stability.
On the upside, Diokno said that the people behind Lyka have already expressed their willingness to register with the BSP as an OPS.
Source: GMA News Online