Crypto Overview in the 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 under the Securities Regulation Code. 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 CEZA licensees may only serve non-Philippine residents and operate under a separate regulatory regime entirely distinct from the BSP and SEC frameworks.

Tax Treatment

The Philippines has no dedicated tax legislation specifically addressing cryptocurrency. The Bureau of Internal Revenue (BIR) applies general provisions of the National Internal Revenue Code by analogy. Crypto gains are treated as taxable ordinary income subject to the graduated individual income tax scale of 0% to 35%. Standard corporate income tax rates of 25%, or 20% for qualifying small corporations, apply to corporate crypto gains. Individuals with gross crypto income below PHP 3 million per year who are not VAT-registered may elect an 8% flat tax on income exceeding PHP 250,000, replacing both income tax and the percentage tax.

A 12% value-added tax may apply when crypto is classified as inventory through frequent trading or when VAT-registered businesses accept cryptocurrency as payment. Non-VAT taxpayers may instead face the 3% percentage tax. Taxpayers report crypto income on standard BIR forms by April 15. The absence of dedicated BIR guidance creates ongoing uncertainty around the capital asset versus trading inventory distinction.

Regulatory Oversight

The BSP serves as the primary regulator for VASPs under Circular No. 1108, issued on January 21, 2021. This framework replaced the earlier virtual currency exchange rules from BSP Circular 944 (2017) and requires registration for entities engaged in virtual asset exchange, transfer, and custody services. It imposes a minimum paid-up capital of PHP 50 million for custodial VASPs, along with cybersecurity standards, consumer protection obligations, travel rule compliance at PHP 50,000 and above, and regular reporting to the central bank. VASPs must obtain a Certificate of Authority from the BSP before operating as a money service business.

The SEC introduced its Crypto-Asset Service Provider (CASP) framework through Memorandum Circular No. 04, Series of 2025, issued May 30, 2025, with the framework taking effect in July 2025. This requires separate registration for platforms dealing in crypto assets that qualify as securities or investment products. 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), a collegial body comprising the BSP Governor, the SEC Chairperson, and the Insurance Commissioner, works alongside both agencies to enforce AML and counter-financing-of-terrorism compliance across the sector. VASPs and CASPs are both classified as covered persons under Republic Act 9160 (the Anti-Money Laundering Act of 2001) as amended by Republic Act 11521 in 2021.

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 was the first bank to receive VASP approval and launched a buy/sell crypto feature in its mobile app in 2025. Maya Philippines operates as both a digital bank and a licensed VASP, offering integrated crypto and banking services. RCBC has served 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. The indefinite moratorium on new VASP licenses further constrains the pipeline of businesses that can establish compliant banking relationships.

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 early 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. Project Agila, the BSP’s wholesale central bank digital currency initiative, completed proof-of-concept testing on December 5, 2024, with six participating institutions testing 24/7 interbank settlement, securities transaction settlement, and cross-border payments. A second proof-of-concept focused on settling tokenized government bonds is now planned. The BSP has ruled out both a retail CBDC and a blockchain-based architecture; a full wholesale CBDC launch is estimated between 2026 and 2029.

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

Crypto License in Philippines

The Philippines operates a dual licensing system for crypto businesses. Depending on the nature of services offered, an operator may need authorization from the BSP as a VASP, from the SEC as a CASP, or from both agencies simultaneously. Foreign platforms serving Philippine residents are subject to the same registration requirements as domestic operators under both frameworks.

Licensing Requirements

BSP VASP registration requires a Certificate of Authority as a Money Service Business. Minimum paid-up capital is PHP 50 million for entities offering custodial services and PHP 10 million for non-custodial VASPs. Annual service fees of PHP 300,000 apply after an initial registration fee of PHP 100,000. VASPs must meet cybersecurity standards, maintain consumer protection controls, implement the travel rule for transfers of PHP 50,000 and above, and transact only with other licensed financial institutions or regulated VASPs. The BSP imposed a moratorium on new VASP license applications on September 1, 2022, extended indefinitely from September 1, 2025. Only existing BSP-supervised institutions with strong supervisory ratings remain eligible for consideration during the moratorium period. As of May 2025, nine entities held active BSP VASP licenses, including Coins.ph, PDAX, Maya Philippines, UnionBank, and Bloomsolutions.

SEC CASP registration under Memorandum Circular No. 04-2025 requires a minimum paid-up capital of PHP 100 million, a local physical office, and CASP operation listed as the primary corporate purpose. A registration fee of PHP 50,000 applies, plus supervision fees based on gross revenue. CASPs must segregate customer funds and comply with AMLC oversight. Platforms offering both payment/exchange services and securities-type crypto products must register with both agencies.

Authorized Activities

BSP-licensed VASPs are authorized to facilitate exchange between virtual assets and fiat currencies, transfer of virtual assets, and custody of virtual assets. CEZA-licensed operators function under a separate regime and may only serve non-resident users within the Cagayan Special Economic Zone.

SEC-registered CASPs may offer trading, exchange, custody, and related services for securities-type crypto assets. Public offering of any crypto asset to Philippine investors requires filing a disclosure document with the SEC at least 30 days before marketing begins. Only registered entities may promote crypto services; marketing by unlicensed parties is explicitly prohibited.

Application Process and Timeline

BSP VASP applications are submitted to the BSP’s Financial Technology Sub-Sector. Given the indefinite moratorium, new entrants have no defined admission pathway; only existing BSP-supervised institutions with strong ratings may apply. Applicants must submit incorporation documents, proof of paid-up capital, governance and compliance manuals, a cybersecurity risk assessment, and an AML/CFT program. No published processing timeline exists.

SEC CASP applications are filed with the PhiliFintech Innovation Office. Required documentation includes corporate registration papers, proof of PHP 100 million paid-up capital, audited financial statements, an AML/CFT compliance program, cybersecurity protocols, and customer fund segregation policies. A feedback period on operational guidelines ran through April 2026. Penalties for non-compliance range from PHP 50,000 for a first offense to PHP 200,000 for a third, with possible license revocation; willful violations carry fines of up to PHP 10 million or imprisonment of up to five years.

Market Characteristics

Adoption Patterns

The Philippines ranks among the highest globally for cryptocurrency adoption. Chainalysis ranked the country 8th out of 151 nations in its 2024 Global Crypto Adoption Index, with an estimated 11 to 12 million Filipinos actively using crypto. This adoption is heavily driven by the remittance market, as the Philippines receives approximately USD 37 billion annually in overseas remittances. Crypto and stablecoins offer faster, cheaper alternatives to traditional money transfer services for the large Filipino diaspora, and the peso-backed stablecoin PHPC, issued by Coins.ph after exiting the BSP sandbox in June 2025, reflects this use case directly.

Consumer access to crypto is concentrated through the small number of licensed VASPs, with mobile-first platforms like Coins.ph and Maya leading adoption given the Philippines’ high smartphone penetration.

Industry Focus

The Philippine crypto industry is distinguished by its focus on remittances and financial inclusion. Peso-backed stablecoin initiatives position the country as a regional leader in stablecoin innovation. Asset tokenization is a key growth area, with government bonds already available in tokenized form. The BSP participates in Project Nexus, a Bank for International Settlements-led initiative connecting real-time payment systems across Singapore, Thailand, Malaysia, and India.

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 was shaped by its time on the FATF grey list. Added in June 2021 for strategic AML and counter-financing-of-terrorism deficiencies, the country was removed on February 21, 2025, at the Paris plenary. Removal recognized the 2021 VASP licensing framework under BSP Circular 1108, travel rule enforcement, and AMLA amendments under Republic Act 11521. FATF maintained a “Partially Compliant” rating for the Philippines under Recommendation 15 in its June 2025 Targeted Update, citing ongoing challenges with unlicensed offshore platforms and decentralized finance risks.

Senate Bill 1557, filed November 26, 2025, proposes further AMLA amendments to explicitly codify VASPs as covered persons and expand AMLC enforcement powers, including non-court subpoena authority. The bill is driven by preparations for the next FATF mutual evaluation, anticipated in 2027. The broader trajectory points toward increasing formalization and dual-agency coverage, though the indefinite VASP moratorium signals continued caution about market expansion pace.