Philippines

Regulatory data is for informational purposes only and may not reflect the most current legal developments. Always consult qualified professionals before making decisions.

Legal Classification and Regulatory Framework

Cryptocurrency Status

Cryptocurrency is legal but not recognized as legal tender in the Philippines. Regulatory treatment depends on which agency has jurisdiction. The Bangko Sentral ng Pilipinas (BSP) classifies crypto as “virtual assets” when used for payments, exchange, or custodial purposes. The Securities and Exchange Commission (SEC) applies its own “crypto-asset” definition to tokens that function as investment contracts or securities. There is no single unified statutory definition across Philippine law.

This dual classification framework means that a crypto business may need to engage with one or both agencies depending on the nature of its operations. The Cagayan Economic Zone Authority (CEZA) also issues licenses for offshore virtual currency exchanges operating within its special economic zone, though these licensees may only serve non-Philippine residents.

Tax Treatment

The Philippines has no dedicated tax legislation specifically addressing cryptocurrency. The Bureau of Internal Revenue (BIR) applies general tax principles by analogy. Crypto gains are treated as taxable income subject to the graduated income tax scale of 0% to 35% for individuals. Standard corporate income tax rates of 25% (or 20% for qualifying small corporations) apply to corporate crypto gains.

A 12% value-added tax may apply when crypto is classified as inventory through frequent trading activity or when goods and services are sold by VAT-registered businesses in exchange for cryptocurrency. Non-VAT taxpayers may instead be subject to the 3% percentage tax. Taxpayers must report crypto income using standard BIR forms, with an annual filing deadline of April 15. The absence of crypto-specific BIR guidance creates uncertainty around certain classifications, particularly regarding how capital gains on crypto dispositions should be categorized.

Regulatory Oversight

The BSP serves as the primary regulator for Virtual Asset Service Providers (VASPs) under Circular No. 1108, issued in 2021. This framework requires registration for entities engaged in virtual asset exchange, transfer, and custody services. It imposes capital requirements of PHP 50 million for custodial VASPs and PHP 10 million for non-custodial VASPs, along with cybersecurity standards, consumer protection obligations, and regular reporting.

The SEC introduced its own Crypto-Asset Service Provider (CASP) rules in May 2025, requiring separate registration for platforms dealing in crypto assets that qualify as securities. CASP applicants must be Philippine-registered stock corporations with paid-up capital of at least PHP 100 million and a staffed local office. The Anti-Money Laundering Council (AMLC) works alongside both agencies to enforce AML/CFT compliance across the sector.

Business Environment

Banking Relationships

Access to banking services remains a significant challenge for crypto businesses in the Philippines. Only a small number of banks currently serve crypto exchanges. UnionBank of the Philippines has been the most proactive, offering crypto trading and custody through its mobile application and participating in blockchain-based remittance projects. Maya Philippines operates as both a digital bank and a licensed VASP. RCBC serves as a payment channel for crypto wallets and exchanges without directly offering crypto purchase services.

The BSP has instructed financial institutions not to transact with unregistered crypto exchanges, which limits banking options for newer or unlicensed entrants. The ongoing moratorium on new VASP licenses further constrains the pipeline of businesses that can establish compliant banking relationships.

Licensing Requirements

The licensing landscape presents a significant bottleneck. The BSP imposed a moratorium on new VASP license applications in September 2022, which was extended indefinitely in August 2025. Only existing BSP-supervised institutions with strong ratings remain eligible to apply during this period. As of late 2025, only nine entities hold active BSP VASP licenses, including Coins.ph, PDAX, Maya Philippines, and UnionBank.

The SEC’s CASP framework, which took effect in July 2025, provides an additional licensing pathway for platforms dealing in security-type crypto assets. However, operational guidelines remain in a feedback period that extends through April 2026. The SEC has actively warned consumers against using unlicensed platforms, issuing advisories identifying specific unregistered operators.

Innovation Support

Despite the restrictive licensing environment, the Philippines has actively supported blockchain innovation through regulatory sandboxes and pilot programs. The BSP operates a Regulatory Sandbox Framework under Circular No. 1153 for emerging technologies. The SEC launched its StratBox sandbox in April 2025, specifically designed for crypto-asset service providers, with participants including GCash and Pluang PH.

Several notable pilot programs have emerged. Coins.ph received BSP sandbox approval in May 2024 to pilot PHPC, a peso-backed stablecoin, which successfully exited the sandbox in June 2025 with expanded issuance capacity. Project Agila, the BSP’s wholesale central bank digital currency initiative launched in December 2022, completed its Phase 2 proof-of-concept in September 2024 with six major financial institutions. The next phase aims to use wholesale CBDC for settling tokenized Treasury bonds.

PDAX’s Project Bayani, published in November 2025, outlined a roadmap estimating a $60 billion tokenized asset market in the Philippines by 2030, spanning public equities, government bonds, and mutual funds. Tokenized government bonds are already distributed through PDAX and GCash, accessible from as little as PHP 500.

Market Characteristics

Adoption Patterns

The Philippines ranks among the highest globally for cryptocurrency adoption, with an estimated 14% ownership rate, compared to just 2.4% for stocks and under 1% for bonds. This adoption is heavily driven by the remittance market, as the Philippines receives approximately $37 billion annually in overseas remittances. Crypto and stablecoins offer faster, cheaper alternatives to traditional money transfer services for the large Filipino diaspora.

Consumer access to crypto is concentrated through the small number of licensed VASPs. The dominance of mobile-first platforms like Coins.ph and Maya reflects the Philippines’ high smartphone penetration and its population’s comfort with digital financial services.

Industry Focus

The Philippine crypto industry is distinguished by its focus on remittances and financial inclusion. The country’s peso-backed stablecoin initiatives, particularly PHPC and the broader multi-issuer stablecoin model, position it as a regional leader in stablecoin innovation. Asset tokenization is also emerging as a key growth area, with government bonds already available in tokenized form through licensed platforms.

The CEZA’s offshore licensing program, while separate from the domestic regulatory framework, has attracted international crypto exchanges to establish operations within the Cagayan Special Economic Zone, creating a parallel offshore industry serving non-resident users.

Regulatory Evolution

The Philippines’ regulatory trajectory has been shaped by its experience on the Financial Action Task Force (FATF) grey list. Added in June 2021 for strategic AML/CFT deficiencies, the country was removed in February 2025 after implementing significant reforms, including the VASP licensing framework, travel rule enforcement for virtual asset transfers, and amendments to the Anti-Money Laundering Act. A next mutual evaluation is anticipated for 2027, and regulators are already preparing reforms.

Pending legislation, specifically Senate Bill 1557 filed in November 2025, seeks to formally codify VASPs as covered persons under the AMLA and expand AMLC enforcement powers. The broader direction points toward increasing regulatory clarity and formalization, though the indefinite moratorium on new VASP licenses signals caution about the pace of market expansion.

Regionally, the Philippines participates in Project Nexus, a BIS-led cross-border real-time payment initiative with Singapore, Thailand, Malaysia, and India. While no binding ASEAN-wide crypto framework exists, the Philippines’ dual-agency approach and stablecoin innovation are closely watched by neighboring jurisdictions developing their own regulatory models.

For Current Information:

• Bangko Sentral ng Pilipinas (BSP)
• Securities and Exchange Commission (SEC Philippines)
• Anti-Money Laundering Council (AMLC)
• Bureau of Internal Revenue (BIR)
• Cagayan Economic Zone Authority (CEZA)