BSP orders Lyka to cease operations

The Bangko Sentral ng Pilipinas (BSP) has ordered social media platform and payment system Lyka to cease operations as the said company is not registered to operate as such.

Lyka is a social media platform launched in the Philippines by a Hong Kong-based company. The app allows its users to purchase, exchange and use Gift cards in Electronic Mode, or GEMs, as a reward to content creators who use the platform. In turn, users can collect Lyka GEMs and use them to purchase items from its partner stores.

The BSP said they previously invited officials of Lyka to register as an “operator of payment system” (OPS) and that the company “expressed a willingness” to do.

The BSP reminds the public to transact only with BSP-registered OPS, which may be cash-in service providers, bills payment service providers, and entities such as payment gateways, platform providers, payment facilitators, and merchant acquirers that enable sellers of goods and services to accept payments in cash or digital form.

Under the BSP’s Circular 1049, OPS that are required to register, but are found to be operating without registration, shall be directed to comply with registration requirements. Those that fail to comply may be ordered to stop operations until immediate action is taken to register with the BSP.

SOURCE: Phil Star