#BSP Axie Infinity

The Bangko Sentral ng Pilipinas (BSP) does not consider Axie Infinity as a virtual asset service provider (VASP), and the central bank is looking into classifying the game as an Operator of Payment System (OPS) like GCash, PayMaya, and other banks. With that said, the BSP is actively monitoring Axie Infinity, how players use and exchange tokens or cryptocurrency assets known as Smooth Love Potion (SLP) as a form of payment, and the extent of its merchant network. Axie Infinity is developed by Sky Mavis, a technology-focused game studio founded in early 2018. However, the BSP said Axie Infinity “is not considered as VASP.” The BSP’s regulatory framework for VASPs allows end-users to exchange fiat currency to crypto-assets to acquire NFTs for game applications and to convert the same back into fiat currency. The central bank, however, said that Axie Infinity is not a VASP as the scope of BSP Circular No. 1108 “excludes digital units of exchange used as in-game tokens, such as the implementation of SLP within Axie Infinity.” Moreover, the central bank monitors how the blockchain gaming app participants use non-fungible tokens (NFTs) to pay for goods and services, which may fall within the activities of an OPS. Read more in our articles including "BSP looking into classifying Axie Infinity as OPS like GCash, PayMaya" and "Insta360 Luna Ultra launched, priced in the Philippines".