After it was ordered by BSP to stop operations and comply with the agency’s guidelines for those operating as an Operator of Payment System (OPS), Lyka has responded to the BSP order, saying that establishments and merchants will stop accepting Lyka GEMS for the meantime in the Philippines.
In its statement posted on the platform’s Instagram stories, Lyka said that they have submitted additional requirements to the BSP as requested, and they will make a proper announcement once BSP gives an update on their registration and compliance.
“We look forwards to the issuance of the license so that our partner merchants can accept Lyka GEMs once again,” it said in its statement to all Lyka users in the Philippines. “Lyka is here to stay and will come stronger than ever.”
To recap, Lyka is backed by a Hong Kong-based company and allows users to purchase, exchange and use “gift cards in electronic mode”, or GEMs, as payment for goods and services. This is the very reason why BSP flagged Lyka for operating as an OPS without being registered.
“The Monetary Board has ascertained that these activities make Lyka an OPS and is thus required to register with the BSP, which is needed before it is allowed to continue with its OPS activities,” BSP Governor Benjamin Diokno said.
In its closing remarks, Lyka advises all of its users to accumulate GEMs for future use.