Philippines Tightens Crypto Rules as Privacy Coins Face Ban

TLDR

• The Bangko Sentral ng Pilipinas issued new crypto listing rules for licensed Virtual Asset Service Providers.
• The new rules require VASPs to complete stronger due diligence before listing any coin or token.
• The BSP banned privacy coins and other anonymity-enhancing assets from licensed crypto platforms.
• Exchanges must monitor listed assets continuously and set clear triggers for suspensions or delistings.
• Delisting triggers may include weak liquidity, issuer insolvency, scams, de-pegging, security breaches, or misleading disclosures.

The Bangko Sentral ng Pilipinas has tightened crypto listing rules for licensed Virtual Asset Service Providers. The new memo requires stronger due diligence before platforms offer digital assets to customers. It also bans privacy coins from exchange listings and platform support.

Philippines Sets New Standards for Crypto Listings

The BSP issued the memorandum through Deputy Governor Lyn Javier. It said the rules seek to protect customers and support financial stability.

The central bank said virtual asset services must remain safe, sound, and consumer-focused. Therefore, licensed VASPs must assess each coin or token before listing it.

Platforms must now create clear accreditation procedures for digital assets. They must also review legal, technical, and market risks before approving tokens.

The BSP also ordered ongoing checks after listing. These checks must cover liquidity, issuer solvency, security issues, and misleading disclosures.

VASPs must set thresholds that can trigger suspensions or delistings. These may include de-pegging events, scams, scandals, or material security breaches.

The memorandum also blocks anonymity-enhancing digital assets from licensed platforms. This ban covers privacy coins that hide transaction details from public review.

He said responsible platforms should already apply strict checks before retail listings. However, he gave a more mixed view on privacy coin restrictions.

Yburan said Monero and Zcash serve legitimate privacy needs in crypto. Yet he added that the Philippines relies heavily on remittances and trusted payment rails.

SEC Rules Add Another Layer for Crypto Firms

The BSP rules sit beside separate oversight from the Philippine SEC. The SEC regulates crypto-asset service providers when tokens fall under securities rules.

The memo said platforms must also follow the SEC’s CASP rules when needed. Therefore, firms may face both central bank and securities requirements.

In June, the SEC issued Memorandum Circular No. 5 for CASPs. It required local registration, customer data storage, and reports to financial crime authorities.

The rules also required paid-up capital of $1.8 million, or about ₱100 million. They placed CASPs under SEC and Anti-Money Laundering Council reporting duties.

By August, the SEC had restricted access to 10 offshore platforms. The list included OKX, Bybit, Kraken, and KuCoin.

Lawmakers also weighed Senate Bill 1330 on public finance transparency. The bill would place the national budget on-chain after protests over $9.2 billion in flagged spending.

Binance has tried to re-enter the market through BlockShoals Technologies Inc. Local reports said BlockShoals received initial SEC sandbox clearance in November.

However, the BSP said Binance and BlockShoals do not hold VASP licenses. The SEC now requires BlockShoals to integrate with a licensed domestic VASP within 90 days.

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