Philippines Suspends Social Media Lyka’s Payment System

(Bloomberg) -- The Philippine central bank has suspended the use of tokens offered by social media platform Lyka as a method of payments in the country, in a sign of tighter enforcement of rules on financial technology.

The Hong Kong-based company allows its users to purchase, exchange and use so-called “gems” as payment for goods and services and must be registered as a payment system operator, Governor Benjamin Diokno said in a briefing on Friday, citing regulation.

Lyka has been asked to register before it is allowed to act as a payments channel, Diokno said. The social media platform’s operators have expressed willingness to comply, he said.

Lyka hasn’t immediately responded to an email request for comment.

Diokno asked the public to transact only with registered payments systems and report those that aren’t, as the monetary authority joined the country’s other financial regulators in calling on legislators to pass a law that will better protect financial consumers.

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