Market News

Crypto Regulations Take Center Stage in the Philippines: A Comprehensive Framework is Born

The Philippines has enacted new regulations mandating strict licensing and capital requirements for crypto-asset service providers (CASPs) to enhance oversight in its digital asset market.

Under the new SEC Memorandum Circular No. 5, CASPs must register as local corporations with a capital investment of at least ₱100 million, which equates to approximately $1.8 million.

These guidelines, which have taken effect, require companies to maintain physical offices and segregate customer assets from corporate holdings while submitting regular operational reports.

Furthermore, the SEC will require companies to provide detailed documentation about any digital asset they issue, including information on features, risks, and underlying technologies.

While this initiative may pose short-term challenges for smaller players, some experts believe it paves the way for mainstream crypto adoption in the Philippines.

Finance Secretary Ralph Recto estimates that the unregulated crypto market in the Philippines is valued at around $107 billion, affecting millions of investors.

The new regulatory framework could create significant operational challenges, particularly given requirements for storing customer data and order executions within the country.

Such stipulations may deter international players, pushing them to reconsider their operational infrastructures.

CASPs will now operate under joint oversight from both the SEC and the Anti-Money Laundering Council, enforcing rigorous transaction monitoring and compliance practices.

As the regulatory landscape evolves, stakeholders hope that these measures will stimulate growth and innovation within the Philippine cryptocurrency ecosystem.