Lyka operations still suspended

MANILA, Philippines — The operations of social media platform Lyka remain suspended as the Bangko Sentral ng Pilipinas (BSP) rejected the registration of its marketing arm as an operator of payment system (OPS).

The regulator has denied the request of Digital Spring Marketing and Advertising Inc. to be registered as an OPS of Lyka/Things I Like Company Ltd. payment system.

BSP Deputy Governor Mamerto Tangonan said Lyka or Things I Like has yet to register as an OPS with the central bank.

“Think of an OPS as a pilot who must personally obtain a flying license to prove that they possess the necessary skills and training to safely operate a passenger aircraft. Digital Spring applying for registration, instead of Lyka/TIL itself, is like saying the airline ticketing office can apply for a flying license on behalf of the pilot. It is the pilot who must apply for the license,” Tangonan said.

The BSP upheld the cease-and-desist order (CDO) issued against Digital Spring last July 23, reiterating that Lyka or Things I Like and not Digital Spring should register as OPS with the BSP.

The BSP transmitted a letter to Digital Spring on its denial of the firm’s requests for reconsideration last Friday.

It issued a provisional certificate of registration in favor of Digital Spring last July 21. It also operates Lyka Philippines in cooperation with Eplayment Corp. which was awarded an OPS license by the BSP in January.

The provisional registration was revoked a few days after the BSP suspended the operations of Lyka.

Lyka, launched in the Philippines by a Hong Kong-based Things I Like, allows its users to purchase, exchange, and use gift cards in electronic mode (GEMs) as payment for goods and services.