Regulated mobile wallets are a crucial tool in the fight against illegal online gambling and should not be disconnected from gaming-related transactions, according to the PlaySafe Alliance.

Mike Defensor, a spokesman for the alliance, said a draft circular from the Bangko Sentral ng Pilipinas (BSP) to tighten rules on mobile wallets is a positive step.

He argued that these wallets, operated by non-bank electronic money issuers, provide valuable data for authorities.

"Mobile wallets provide Know Your Client (KYC) data and transaction trails that enable authorities to trace flows, link accounts to suspected operator networks, and build cases," Defensor said.

He noted that without these digital trails, payments would revert to cash or unregulated channels, making investigations significantly more difficult.

Defensor highlighted that the BSP's proposed measures—such as stronger identity verification, daily transaction limits and mandatory monitoring for gambling activity—would create the necessary framework for wallets to flag and block illicit transfers.

He also said that the ability to freeze suspect accounts under clear due-process rules could stop funds from being laundered.

He cautioned that a total ban on mobile wallets for gambling could drive bettors toward unregulated payment methods, which are harder for regulators to monitor.

Defensor recommended that policymakers focus on calibrated measures, including stronger KYC, transaction thresholds, pattern-based monitoring and mandated reporting.

This approach, he said, would keep wallets convenient for consumers while making them an effective tool for licensed e-gaming platforms.

He also urged the inclusion of consumer protection tools like self-exclusion and voluntary spending caps.

The PlaySafe Alliance, which includes 20 founding members, has publicly supported the BSP's proposed circular to regulate online gambling payment services. The group, composed of government-licensed operators, advocates for strict regulations as part of its commitment to responsible gaming.