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Author: Admin | 2025-04-27
Crypto regulation in the Philippines is in a quasi-legal state as of now. It is not yet accepted completely, nor has been completely outlawed. Cryptocurrency transactions are legal in the Philippines , however, the crypto coins are not considered “legal tender”. The country has a progressive and pragmatic outlook on cryptocurrency, allowing its usage as a payment method and issuing licenses to crypto exchanges and service providers. It has a vibrant crypto community with events, meetups and initiatives in favour of digital assets. This report by Coinpedia outlines a brief analysis of the state of cryptocurrency in the Philippines in 2024.IntroductionBanko Sentral ng Pilipinas or BSP is the governing body in the Philippines, which has issued guidelines concerning virtual currencies (VCs). In recent years, the crypto world has grown immensely with a lot of people using digital currencies. This has led to the government’s development of a regulatory framework for Cryptocurrency. The Securities and Exchange Commission (SEC) is the government agency which looks after regulating the Philippines’ securities, investments and financial instruments. Regulatory FrameworkIndividuals or businesses that operate VC exchanges are required to register with the BSP and adhere to operational mandates, including risk management practices and customer identification processes. These regulations aim at protecting the financial system from potential abuse.The SEC has also issued rules concerning ICOs and the use of crypto in investment schemes. To operate a crypto exchange, one must obtain a VASP license and for additional services, other licenses are required, including Electronic Money Issuer (EMI) and a Remittance and Transfer Company (RTC). The central bank of the Philippines, BSP, is expanding its cryptocurrency regulations to meet changing market demands. It recently issued its first Advanced Electronic Payments and Financial Services (EPFS) license to Coins, a credential previously reserved for traditional banks.As in any regulated sector, anti-money laundering (AML) is a major compliance issue in the cryptocurrency industry. Significant progress has been made in Know Your Customer (KYC) processes. Since the Philippines does not have a unified national ID card, companies must have systems that can recognize valid ID documents from all 82 provinces.May 09, 2024: The Bangko Sentral ng Pilipinas (BSP) approved a pilot for PHPC, a stablecoin backed by the Philippine peso, in collaboration with Coins.ph. This grant was sanctioned under BSP’s Regulatory Sandbox Framework.March 25, 2024: The Philippines National Telecommunications Commission (NTC) blocked websites of crypto companies offering investment products without the necessary licenses.January 31, 2023: There are 19 registered VASPs in the country. In early 2023, the SEC partnered with the University of the Philippines Law Center to work together on guidelines for digital assets. January 25, 2023 : The SEC drafted IRR(Implementing Rules and Regulations) for Republic Act No. 11765, covering
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