Industry leaders urge collaboration between BSP and SEC to support innovation and investor protection in the digital asset space
The Philippines is on the brink of a regulatory transformation as the Securities and Exchange Commission (SEC) introduces its Crypto Asset Service Provider (CASP) framework alongside the Bangko Sentral ng Pilipinas’ (BSP) existing Virtual Asset Service Provider (VASP) rules. The dual-framework approach has sparked urgent calls for clear coordination to avoid confusion and operational burdens on cryptocurrency firms.
“The BSP and SEC have existing coordination mechanisms, such as the Financial Sector Forum,” the BSP stated, emphasizing its ongoing partnership with the SEC in reviewing and harmonizing virtual asset regulations. The central bank added that it is “closely working on the review of existing rules and regulations on VASPs, focusing on key aspects such as scope of regulatory and supervisory powers, information sharing, alignment of reporting requirements, and consultation about emerging products and services.”
The SEC echoed the BSP’s sentiment, affirming that its strategy for BSP-licensed VASPs is built on “close collaboration and formal agreements with the BSP,” as it develops a Memorandum of Agreement (MoA) with the central bank. This MoA aims to resolve jurisdictional overlaps and guide the industry toward a cohesive and investor-safe financial market.
Wei Zhou, Chief Executive Officer of Coins.ph, called for a regulatory structure that empowers domestic exchanges to remain competitive. “What I would love to have is a regulatory framework that allows us to provide these products and services so that at least day-to-day normal Filipinos have financial access, have financial empowerment,” he said during a Google Meet interview.
Coins.ph, a BSP-registered VASP and remittance firm, serves over 16 million users across the Philippines. Mr. Zhou noted that his company has grown under the current VASP regulations and sees a potential alignment with U.S. crypto regulations. He urged caution, warning against frequent changes that could disrupt operations.
He also envisioned the future of crypto technology as extending beyond trading, with tokenized local assets such as cacao and coffee beans becoming accessible to ordinary Filipinos—provided the legal framework allows it. “Don’t try to regulate for the past. Try to build, you know, rules for the future, right?” Zhou said.
Jiro Reyes, CEO of crypto education platform Bitskwela, praised the SEC’s CASP draft rules as “a step in the right direction.” However, he warned that the P100 million paid-up capital requirement might exclude smaller but credible players in the local Web3 community.
“I personally know a lot of passionate and credible teams in the local Web3 scene who are building real value, but don’t have that kind of capital yet,” said Reyes. He advocated for a flexible, tiered licensing system that scales based on a company’s risk profile or business type, rather than a flat capital requirement. “A more flexible, tiered system… would give them a pathway to legitimacy without being held to the same standards as major financial intermediaries.”
Both Reyes and Zhou stressed the importance of regulatory clarity and a nurturing environment for innovation in the Philippines’ crypto industry.
“Harmonization is long overdue — and honestly, it’s one of the biggest unlocks we need for Web3 to thrive in the Philippines,” said Reyes.
“What you don’t want is like you want to do something and then everybody else but the Philippines is doing it. And then there’s no guidance on how to do it here in the Philippines. I think that’s what we don’t want to happen,” Zhou concluded.
As the country refines its regulatory frameworks, the successful convergence of innovation and governance may define the future of cryptocurrency in the Philippines.
