New SEC rules and BSP’s moratorium expiry poised to reshape digital asset landscape
The Philippine cryptocurrency industry is on the cusp of a transformative shift in 2025, as sweeping new regulations from the Securities and Exchange Commission (SEC) and the looming expiration of the Bangko Sentral ng Pilipinas’ (BSP) moratorium on Virtual Asset Service Provider (VASP) licenses redefine the nation’s crypto ecosystem.
The BSP first paused the issuance of new VASP licenses in September 2022, halting the entry of new players into the regulated crypto space. Virtual assets, as defined under Section 902-N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), encompass digital units that can be traded or used for payments or investments. As of May 2025, only 13 firms hold active VASP licenses.
But in a landmark development on May 30, the SEC introduced its CryptoAsset Service Provider (CASP) Rules and Guidelines, designed to expand and clarify the regulatory framework governing crypto service providers and related firms.
Cryptocurrency activity continues to rise in the country. Finance Secretary Ralph G. Recto, in an interview with Bloomberg TV in January, highlighted that ₱6 trillion worth of crypto investments had been made in the Philippines. Despite this growth, the SEC has made deliberate efforts to rein in unregulated entities. Last year, the commission sought to block access to Binance for failing to secure the proper licenses to solicit investments or operate a securities exchange.
“Investment or securities related crypto activities fall under the jurisdiction of the SEC,” the commission’s PhiliFintech Innovation Office said via e-mail. “The proposed SEC Rules for CASPs, when compared to BSP’s existing VASP regulations, have different objectives in terms of addressing risks in the crypto market in the Philippines.”
Empowered by Republic Act No. 11765, also known as the Financial Products and Services Consumer Protection Act, the SEC now oversees non-traditional financial products, including crypto-assets in investment form.
Under the new SEC rules, crypto-assets are defined as cryptographically secured digital representations of value or rights, operating on distributed ledger technologies. CASPs are businesses offering or facilitating crypto-asset services, including trading platforms and public offerings. The rules mandate strict requirements, including a ₱100 million minimum paid-up capital (excluding crypto assets), physical offices in the Philippines, and formal registration with the SEC.
“Once the final and approved CASP Rules and Guidelines are published, all existing natural or juridical persons that fall within the scope of these regulations — including BSP-licensed VASPs — will have thirty (30) days from the date of publication in two (2) newspapers of general circulation to begin complying with the new requirements,” the SEC office stated.
Meanwhile, the BSP is reassessing its moratorium, reaffirming its focus on financial stability and consumer protection.
“The moratorium for new VASP applications is currently under review,” the BSP said in a separate e-mail interview. “Key considerations include the developments in the local and global VASP landscape and the results of supervisory activities, among others.”
Even during the moratorium, the BSP remained active in oversight, revoking the licenses of Atomtrans Tech Corp., Coinville Phils., Inc., and Bexpress, Inc. Moving forward, the central bank plans to scrutinize governance structures, risk management capabilities, and business models of new applicants, aligning them with national digitalization and financial inclusion goals.
It also intends to revise minimum capital requirements — currently set at ₱10 million for non-custodial VASPs and ₱50 million for custodians — based on feedback from routine examinations and market developments. These changes come in response to high-profile failures such as FTX, Bybit breaches, and recurring crypto scams.
“The moratorium has enabled the BSP to lay the groundwork for a more bespoke regulatory environment for VASP,” the BSP said.
With dual oversight from the SEC and BSP, 2025 marks a defining year for crypto in the Philippines — one that promises to bring greater accountability, investor protection, and institutional legitimacy to the fast-evolving digital frontier.
