The Philippines has emerged as a dynamic player in the fast-evolving virtual asset (VA) landscape, balancing innovation with regulatory oversight. As global interest in cryptocurrencies and blockchain technology grows, the country is shaping a comprehensive framework to govern virtual asset service providers (VASPs) and crypto asset service providers (CASP), while fostering financial inclusion and technological advancement.
Regulatory Framework for Virtual Assets in the Philippines
The regulation of virtual assets in the Philippines operates under a multi-agency model, with distinct mandates assigned to key financial authorities. This coordinated yet segmented approach ensures coverage across payment systems, securities, anti-money laundering (AML), and economic zone-specific licensing.
Bangko Sentral ng Pilipinas (BSP)
As the central bank, BSP oversees entities involved in money transmission and currency exchange, including VASPs. It classifies virtual asset activities involving fiat-to-crypto conversion, transfers, and custodial services under its regulatory purview. The BSP aligns its policies with Financial Action Task Force (FATF) standards to combat money laundering and terrorist financing (AML/CFT).
To ensure operational robustness, BSP mandates minimum paid-in capital requirements:
- PHP 50 million (~USD 959,000) for VASPs offering custody or management services.
- PHP 10 million (~USD 192,000) for non-custodial VASPs.
BSP also supports innovation through its regulatory sandbox, where projects like the PHPC stablecoin—a peso-pegged digital currency developed by Coins.ph—are being tested.
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Securities and Exchange Commission (SEC)
The SEC steps in when virtual assets meet the definition of securities—such as investment contracts or tokenized equity. In such cases, initial coin offerings (ICOs), digital asset trading platforms, and related service providers fall under its jurisdiction as Crypto Asset Service Providers (CASP).
In late 2024, the SEC released a draft regulatory framework for CASPs aimed at aligning with international standards set by the International Organization of Securities Commissions (IOSCO). This includes rules on investor protection, disclosure requirements, market integrity, and fraud prevention.
Anti-Money Laundering Council (AMLC)
The AMLC plays a critical enforcement role by monitoring compliance with the Anti-Money Laundering Act (AMLA). Since 2020, VASPs have been designated as covered institutions, requiring them to report suspicious transactions and implement Know-Your-Customer (KYC) protocols. The AMLC collaborates closely with BSP and SEC to close regulatory gaps and respond to FATF’s graylisting pressures.
Cagayan Economic Zone Authority (CEZA)
Located in northern Luzon, the Cagayan Economic Zone positions itself as the “Crypto Valley of Asia.” CEZA offers an alternative licensing path—the Offshore Virtual Currency Exchange (OVCE)—for firms serving non-resident clients. However, any platform targeting Philippine residents must still obtain a BSP-issued VASP license, ensuring consumer protection remains intact.
Key Market Players: Coins.ph and Maya
Two dominant players exemplify the integration of virtual assets into everyday financial life in the Philippines.
Coins.ph
Founded in 2014 by Silicon Valley entrepreneurs Ron Hose and Runar Petursson, Coins.ph was among the first licensed VASPs in the country. Originally designed to serve the unbanked population, it now offers:
- Digital wallet with bill payments, mobile reloads, and domestic/international remittances.
- Cryptocurrency trading and secure storage.
- OTC desk (Coins TradeDesk) for institutional clients.
- API solutions (Coins Access) enabling third-party integrations.
- Stablecoin pilot participation (PHPC).
With over 16 million registered users, Coins.ph continues to bridge traditional finance and digital assets.
Maya Philippines, Inc.
Originally launched as PayMaya in 2007, Maya evolved into a full-stack fintech platform under Voyage Innovation. Holding both a digital banking license (Maya Bank) and a VASP license, Maya integrates crypto services within its all-in-one app:
- QR Ph-enabled payments and peer-to-peer transfers.
- Crypto buying, selling, and wallet storage.
- Investment options (funds and stocks).
- Insurance, bill payment, and mobile top-up.
As of late 2024, Maya boasts over 5 million digital banking users and more than 50 million virtual asset wallet registrations, making it one of the most widely adopted financial apps in the nation.
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Comparative Analysis: Philippines vs. Taiwan
While both economies are advancing their virtual asset regulations, notable differences exist in governance structure and policy design.
Governance Model
- Philippines: Dual-regulator system—BSP handles payment-related VA activities; SEC regulates securities-linked crypto offerings.
- Taiwan: Centralized oversight by the Financial Supervisory Commission (FSC), which will issue a unified license for all VASP activities under its proposed Virtual Asset Service Act (draft published March 2025).
Definition and Scope
- The Philippines distinguishes between VASPs (currency exchange focus) and CASP (investment/securities focus), potentially creating overlap for hybrid platforms.
- Taiwan’s draft law adopts a broader definition of VASP, covering exchange, transfer, custody, issuance, lending, and more—all under one licensing regime.
Stablecoin Regulation
- The Philippines currently lacks a dedicated stablecoin framework under BSP rules.
- Taiwan proposes a strict model: only banks may issue stablecoins, limited to fiat-collateralized types (e.g., USD or TWD), with mandatory reserve audits and FSC approval.
AML/CFT and Consumer Protection
Both jurisdictions strictly adhere to FATF guidelines. They require:
- Robust KYC/AML procedures.
- Transparent risk disclosures.
- Secure asset custody.
- Complaint resolution mechanisms.
Taiwan’s draft further strengthens protections through mandatory client asset segregation, trust arrangements for fiat funds, and explicit anti-fraud provisions.
Future Outlook and Market Implications
The Philippine virtual asset market stands at a pivotal juncture:
- BSP has paused new VASP applications since September 2022—a freeze set to last until September 2025—to reassess risks and refine regulations.
- Meanwhile, the SEC’s upcoming CASP rules could open doors for new entrants focused on tokenized securities and investment products.
For market participants, this period demands proactive compliance planning and close monitoring of regulatory developments. As technology evolves rapidly, regulators aim to strike a balance between fostering innovation and safeguarding financial stability.
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Frequently Asked Questions (FAQ)
Q: What is the difference between a VASP and a CASP in the Philippines?
A: A VASP refers to firms handling crypto-fiat exchange, transfers, or custody under BSP rules. A CASP involves services related to crypto assets deemed securities (like ICOs), regulated by the SEC. Some platforms may fall under both categories.
Q: Can foreign crypto exchanges operate in the Philippines?
A: Only if they obtain a local license. Offshore platforms serving Philippine residents without authorization are non-compliant. CEZA’s OVCE license applies only to businesses serving international clients from within its zone.
Q: Is there a legal framework for stablecoins in the Philippines?
A: Not yet fully established. While BSP allows testing via sandbox (e.g., PHPC), no formal stablecoin issuance rules exist. Regulatory clarity is expected post-2025.
Q: How does the Philippines ensure consumer protection in crypto?
A: Through mandatory disclosures, secure wallet standards, complaint systems, AML checks, and capital requirements enforced by BSP and SEC.
Q: Are Filipinos allowed to invest in cryptocurrencies?
A: Yes. Cryptocurrency ownership is legal. Licensed platforms like Coins.ph and Maya provide regulated access to buying, selling, and storing digital assets.
Q: How does Taiwan’s approach differ from the Philippines’?
A: Taiwan adopts a single-regulator model with comprehensive legislation in progress. The Philippines uses a split framework but offers early-mover advantages through existing licenses and sandbox innovation.
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