Lyka operator vows to fulfill obligations amid halt order
Controversial social media platform Lyka vowed to fulfill its obligations with partner merchants despite an order from the Bangko Sentral ng Pilipinas (BSP) to halt its operations until it secures the required license as an operator of payment system (OPS).
Through its marketing arm Digital Spring Marketing and Advertising Inc., Lyka said it would continue to communicate with the BSP regarding its application for an OPS license.
“Rest assured that Digital Spring will continue to fulfill its obligations with its partner merchants in parallel to its ongoing compliance with the BSP’s requirements,” Lyka said.
Lyka said the platform has helped thousands of businesses and millions of Filipinos amid the pandemic.
It said Lyka Mall, Lyka Grocery and Lyka Games would continue to advance in order to fulfill the needs of users.
The BSP issued an OPS provisional certificate of registration in favor of Digital Spring last July 21. Lyka US and Lyka Hong Kong fully support the initiatives of the operator of Lyka in the Philippines in its registration with the central bank as an OPS.
Digital Spring also operates Lyka Philippines in cooperation with Eplayment Corp. which was awarded an OPS license by the BSP in January.
The BSP has been reminding entities operating a payment system to comply with the requirement under Republic Act 11127 or the National Payment Systems Act (NPSA) and Circular 1049 to register with the central bank.
Circular 1049 provides for the rules and regulations on the registration of OPS and the BSP to have oversight of the payment system it operates to ensure that it functions safely, efficiently and reliably by itself, consistent with the central bank’s objectives of consumer protection and financial stability.
“We are confident that operations in the Philippines will continue to stay strong with the submission and continuous coordination of Digital Spring with the BSP and other regulatory bodies,” Lyka said.
It said it aims to become an app conglomerate powered by Lyka GEMs, the first cashless and seamless social media gift card in the world.
“From the start, we’ve always known that nothing truly worth it ever came easy. This Lyka mantra inspires us to work with courage and swag. This is but a minor hiccup compared to the dent that we will put on the universe,’’ the company said.
BSP Governor Benjamin Diokno has ordered Lyka to halt its operations after the Monetary Board ascertained that the company has to be registered with the central bank.
Lyka, launched in the Philippines by Hong Kongbased Things I Like Company Ltd, allows its users to purchase, exchange, and use Gift cards in Electronic Mode or GEMs as payment for goods and services.
“To date it is not registered with the BSP. The BSP has directed Lyka to suspend activities as an OPS and invited the company to apply for registration with the BSP before it is allowed to continue with its OPS activities,” Diokno said.