tl;dr
Crypto-asset service providers (CASPs) in the Philippines must now obtain licenses, register as local corporations with a minimum paid-up capital of ₱100 million (US$1.8 million), and comply with strict disclosure and operational requirements under the country's new comprehensive digital asset frame...
The Philippines has introduced its most comprehensive digital asset regulatory framework, requiring crypto-asset service providers (CASPs) to obtain licenses, register as local corporations with a minimum paid-up capital of ₱100 million (approximately US$1.8 million), and comply with rigorous disclosure and operational standards. This framework mandates physical offices, segregation of customer assets from corporate holdings, regular operational reporting, and detailed documentation about the features and risks of digital assets. The aim is to foster mainstream adoption of cryptocurrencies within the country’s $107 billion market while addressing initial compliance challenges, especially for smaller firms.
CASPs are subject to joint oversight by the Securities and Exchange Commission (SEC) and the Anti-Money Laundering Council, which enforces rigorous transaction monitoring, Know Your Customer (KYC) policies, and quarterly submission of board meeting minutes and risk assessments. Furthermore, certain technical rules—such as requirements for storing customer data and order execution within the Philippines—could complicate operations, potentially discouraging international players without significant technological adjustments.
While these new regulations could pose short-term hurdles, industry experts like Nathan Marasigan of MLaw Office highlight that the framework ultimately lays the groundwork for legitimate and widespread crypto adoption by filling a regulatory vacuum. Finance sector leaders, including Luis Buenaventura from GCash, emphasize that the ₱100 million capital requirement is reasonable for startups aiming to compete by delivering fast, reliable apps, though it may require licensed entities to overhaul their IT infrastructure. This creates a strategic advantage for compliant firms that have long faced disadvantages against unlicensed competitors.
The SEC remains open to evolving the regulatory framework, signaling a progressive intent to nurture the growth and development of the digital asset sector in the Philippines. Although the rules introduce new operational complexities, they provide much-needed oversight to a vast and largely unregulated market that encompasses millions of Filipino crypto investors.