Summary
- The Bangko Sentral ng Pilipinas (BSP) has mandated all Virtual Asset Service Providers to establish "a comprehensive due diligence and accreditation process" prior to the listing or trading of any virtual asset on their platforms.
- The regulations specifically ban "anonymity-enhancing virtual assets, also known as privacy virtual assets," which excludes coins like Monero and Zcash from compliant local exchanges.
- This action continues a year-long effort to tighten crypto regulations in the Philippines, which started with the Securities and Exchange Commission's (SEC) licensing framework and restrictions on offshore exchanges.
The Philippines is once again tightening its regulations on the cryptocurrency market.
The Bangko Sentral ng Pilipinas (BSP) has released new guidelines for coin and token listings that require all licensed Virtual Asset Service Providers (VASPs) to implement stringent due diligence and accreditation processes before offering digital assets to their clients.
According to a memorandum issued by Deputy Governor Lyn Javier, the purpose of these rules is to "promote financial stability and safeguard the financial interests of customers by ensuring that VA services are delivered in a secure, sound, and consumer-focused manner."
Additionally, the central bank has prohibited the listing or support of anonymity-enhancing cryptocurrencies, commonly referred to as privacy coins, by VASPs.
The new memorandum requires exchanges to continuously monitor listed assets and set thresholds that could lead to suspensions or delistings.
"This is long overdue, and I think this is the right call. I don't think this is bureaucratic red tape; this is the minimum bar any responsible platform should already be applying before listing an asset to retail users," stated Alden Yburan, head of crypto at GCash, in an interview with Decrypt. "Stricter listing standards would result in better products."
He expressed ambivalence regarding the privacy coin ban, acknowledging that cryptocurrencies like Monero and Zcash "exist for legitimate reasons" since privacy is "a fundamental principle in crypto, enabling transactions without surveillance."
"However, the Philippines has a significant remittance market, and we cannot position the ecosystem as a trusted financial infrastructure while simultaneously allowing anonymity-enhancing assets to circulate freely," he added.
VASPs are also required to conduct ongoing asset monitoring and establish criteria that could trigger delisting, including loss of liquidity, insolvency of the asset issuer, involvement in scandals or scams, de-pegging, significant security breaches, or misleading disclosures.
The memorandum indicates that platforms may need to coordinate with securities regulators, ensuring compliance with "the SEC's CASP Rules and Guidance" if a token is classified as a security.
The Philippines ranks ninth globally on Chainalysis's 2025 Global Crypto Adoption Index, part of an APAC region that experienced a 69% year-over-year growth in grassroots adoption.
Two Regulatory Bodies, Two Frameworks
The listing regulations fall within a framework where crypto companies report to two different regulatory authorities.
The SEC oversees crypto-asset service providers concerning securities regulations, while the BSP issues licenses to VASPs for payment and transaction purposes. Companies must independently comply with both sets of regulations.
In June, the SEC implemented Memorandum Circular No. 5, requiring crypto-asset service providers (CASPs) to register locally, maintain $1.8 million (₱100 million) in paid-up capital, store customer data within the country, and report to both the SEC and the Anti-Money Laundering Council.
By August, the commission had restricted access to 10 offshore platforms, including OKX, Bybit, Kraken, and KuCoin.
Luis Buenaventura, President of the Blockchain Council of the Philippines, previously stated to Decrypt that the SEC's regulations created "a competitive advantage for licensed operators," and he believes the broader crackdown will gradually lead users toward compliant services.
Lawmakers are also pursuing a separate initiative, considering Senate Bill 1330, which aims to place the national budget on-chain following widespread protests regarding approximately $9.2 billion in flagged public works expenditures.
Binance Seeks to Re-enter the Market
Global cryptocurrency exchange Binance is making efforts to re-establish its presence in the Philippines through local partner BlockShoals Technologies Inc., which received initial SEC approval in November under the StratBox regulatory sandbox, according to a report from local media outlet BitPinas.
However, the BSP has clarified that neither Binance nor BlockShoals possesses a VASP license, and participation in the sandbox "doesn't replace the need for central bank licensing."
The SEC has since refined its terminology, reclassifying Binance as a "global crypto-asset service provider" instead of a global VASP, and now requires BlockShoals to partner with a licensed domestic VASP within 90 days prior to onboarding any users via Binance's infrastructure.