Humirit pa! E-wallet bust SquidPay seeks 2nd chance after BSP revokes license

Self-styled fintechpreneur Marvin Dela Cruz is now exploring legal remedies after the Bangko Sentral ng Pilipinas (BSP) cancelled Squidpay’s registration and license to operate for multiple violations.

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Fintechpreneur Marvin dela Cruz’s SquidPay Technology Inc. cannot do business as an e-money issuer and payment system operator after the BSP found the company engaging in unsound business practices.

“Despite our best efforts to fully address the concerns from our initial audit, which included a voluntary proposal to undergo rehabilitation with supervision as needed, we believed that the decision to revoke our operating license came as a severe penalty,” SquidPay said in a statement.

Dela Cruz and his squad are not giving up, though.

“We firmly believe that, like every other small Filipino entrepreneur, including SquidPay, we all deserve the chance to grow and improve, to endeavor for success with complete guidance and support rather than being faced with immediate termination,” it added.

“Rest assured that SquidPay is truly committed to exploring all legal remedies in order to continue serving Filipinos.”

A Manila regional trial court previously issued a writ of preliminary attachment on the assets of Dela Cruz and SquidPay due to its non-payment of a P100 million loan that fell due in June 2022. The loan was convertible into shares owned by Dela Cruz in investment holding firm Premiere Horizon Alliance. However, he claimed that the loan was a false claim against him.

Under BSP rules, officers and directors can be temporarily disqualified for refusal to fulfill their financial obligations, but may return upon settling their debt. The disqualification, however, becomes permanent if a financial firm’s officers and directors are found guilty and the judgment has become final.

Despite the legal issues involving Dela Cruz and SquidPay, the fintech firm said it “has never been involved in any incidents related to cyber security breaches, theft, loss of public funds, or money laundering.”