The Bangko Sentral ng Pilipinas (BSP), the Philippines’ central bank, has introduced stricter rules for cryptocurrency exchanges and other virtual asset service providers (VASPs) operating in the country.
The new regulations require crypto platforms to carry out much more detailed reviews before listing cryptocurrencies, stablecoins, or other digital assets for customers. Regulators say the goal is to strengthen investor protection, improve transparency, and reduce financial crime risks in the growing digital asset sector.
Under the new guidance, exchanges must establish a strong due diligence process before approving any cryptocurrency for trading. This means platforms will need to carefully examine the project behind each token and assess potential risks before making it available to users.
The BSP outlined six key areas that exchanges must evaluate: the background of the issuer, the maturity of the market, the asset’s use cases, transparency and security standards, liquidity and redemption mechanisms, and overall legal and regulatory compliance.
To complete these reviews, exchanges may need to examine company documents, ownership structures, audited financial statements, beneficial ownership information, and the qualifications of company executives and directors.
Regulators also want exchanges to assess whether a cryptocurrency has sufficient market activity. Factors such as market capitalization, trading volume, years in operation, exchange listings, and the number of token holders may all be considered when evaluating an asset.
Stablecoins will face even greater scrutiny.
The central bank wants exchanges to review how stablecoins are issued, redeemed, minted, and burned. Platforms may also need to verify the quality and availability of reserve assets backing these tokens to ensure they can support customer redemption requests.
The BSP emphasized that project whitepapers should be easily accessible to users and contain clear information about the project’s goals, token economics, blockchain infrastructure, purchase methods, and potential risks.
The new rules also require continuous monitoring after a token is listed.
Exchanges must regularly review listed assets and establish clear conditions that could lead to suspension or delisting. Tokens may be removed if they become involved in legal issues, cybersecurity incidents, misleading disclosures, market manipulation, consumer protection concerns, or unusual price activity.
Regulators stressed that exchanges should act quickly whenever serious risks emerge.
The BSP also reaffirmed its existing ban on privacy-focused cryptocurrencies. Tokens designed to hide transaction details or user identities remain prohibited on licensed crypto platforms in the Philippines.
The updated framework is part of a broader effort by Philippine regulators to create stronger oversight for the cryptocurrency industry while allowing innovation to continue within a regulated environment.
The announcement comes as major crypto companies seek a clearer path into the Philippine market. Binance, for example, has recently been exploring opportunities to return through a regulatory sandbox program supervised by the Philippine Securities and Exchange Commission.
However, regulators have made it clear that participation in such programs does not replace the requirement to obtain a proper VASP license from the central bank.
Overall, the new rules signal that the Philippines is taking a more structured approach to crypto regulation, aiming to balance innovation with stronger consumer protection, transparency, and compliance standards.
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