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SEC's New Crypto Regulations Set a Stronger Framework for the Philippines Market

The Philippines Securities and Exchange Commission (SEC) has launched new regulations aimed at governing crypto asset service providers (CASP) more effectively.

Under the recent SEC Memorandum Circulars Nos 4 and 5, all CASPs must now obtain a license alongside a minimum capital requirement of PHP 100 million.

The regulations mandate strict reporting on Anti-Money Laundering (AML) practices and require companies to disclose asset ownership and operational risks prior to marketing, with submissions due at least 30 days in advance.

Additionally, crypto firms must establish a physical office in the Philippines and pay an initial filing fee of PHP 50,000, alongside an annual supervision fee based on revenue.

The SEC also emphasizes consumer protection, with oversight from both the SEC and the AML Council to ensure fair access and compliance with Know Your Customer (KYC) policies.

Non-compliance can lead to severe penalties, including fines up to PHP 100 million and possible imprisonment for up to five years.

While these regulations seek to clarify the operational landscape for crypto in the Philippines, experts warn of significant challenges in implementing them effectively.

Luis Buenaventura from GCash pointed out that while regulation often evolves, it is essential for authorities to remain flexible and responsive to industry needs.

This regulatory framework could pave the way for deeper crypto adoption in the Philippines while ensuring tighter security and higher professional standards for investors.

As the global crypto market evolves, the Philippines may emerge as a more structured and appealing environment for digital asset enterprises.