Philippine Central Bank Tightens Crypto Rules, Bans Privacy Coins

The Bangko Sentral ng Pilipinas issued a memorandum signed by Deputy Governor Lyn Javier requiring all licensed virtual asset service providers to implement due diligence and an accreditation process before listing or trading any digital asset. The memorandum also prohibits anonymity-enhancing cryptocurrencies, commonly known as privacy coins, from being offered on Philippine platforms.

The central bank instructed VASPs to assess assets before listing, maintain ongoing monitoring after listing, and set clear thresholds for suspension or delisting. The guidance lists specific triggers that could prompt removal, including loss of liquidity, issuer insolvency, involvement in a scam or scandal, de-pegging of tokens, material security breaches, and misleading disclosures.

The memorandum states the measures aim to promote financial stability and protect consumers by ensuring virtual asset services operate in a safe and consumer-focused manner. The requirements apply to all licensed VASPs operating in the Philippines and include obligations for continued oversight of listed tokens.

The listing rules operate alongside separate Securities and Exchange Commission requirements. The SEC requires crypto-asset service providers whose tokens are treated as securities to register locally, hold ₱100 million in paid-up capital, store customer data onshore, and report to the SEC and the Anti-Money Laundering Council. The SEC has also blocked access to several offshore platforms that were offering services to Philippine residents without local registration.

The central bank addressed proposals by global exchanges to return to the Philippine market through local partners. The BSP warned that participation in a regulatory sandbox does not replace a central bank VASP license. The SEC has required a local sandbox participant planning to work with a global exchange to integrate with a licensed domestic VASP within 90 days before onboarding users.

Alden Yburan, head of crypto at GCash, called the tougher listing standards ‘the minimum bar any responsible platform should already be applying’ and said they would improve product quality, while adding that privacy coins ‘exist for legitimate reasons’ because some users value privacy. Luis Buenaventura, president of the Blockchain Council of the Philippines, said the combined requirements from the SEC and the central bank will encourage users to migrate to licensed platforms.

The Philippines ranked ninth in a 2025 global crypto adoption index, reflecting high retail and remittance use. Regulators have issued multiple measures over the past year to tighten oversight, including capital and operational standards for service providers and actions to limit unregistered platforms.