The Philippine Securities and Exchange Commission unveils new regulations for crypto-asset trading, setting a regulatory framework to govern digital platforms, marketing, and issuance activities nationwide.
New Measures Require Crypto Firms to Register and Disclose Offerings Before Public Launch
The Securities and Exchange Commission (SEC) of the Philippines has released comprehensive regulations aimed at governing the marketing, issuance, and trading of crypto-assets, underscoring its commitment to investor protection and market integrity in the digital economy.
The reforms, codified under Memorandum Circular Nos. 4 and 5, Series of 2025, are collectively known as the SEC Rules on Crypto-Asset Service Providers (CASP Rules) and the SEC Guidelines on the Operations of Crypto-Asset Service Providers (CASP Guidelines).
According to the SEC, the introduction of these frameworks is designed to strike a balance between enabling innovation and safeguarding the investing public from fraud and abuse. All entities involved in crypto-asset services—including platforms offering, marketing, or facilitating crypto-asset trading—must now be registered and licensed by the SEC before commencing operations.
Under the new guidelines, a crypto-asset is defined as “a cryptographically secured digital representation of value or of a right that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions that can be transferred, stored, or traded electronically.”
The SEC has made clear that no crypto-assets or crypto-asset securities can be marketed, sold, or distributed without an approved disclosure document or registration statement filed with the commission. Any unlicensed promotional or sales activity is now subject to penalties under the new rules.
The country’s regulatory tightening has also caught the attention of local policy groups. Think tank Infrawatch welcomed the SEC’s decision to establish the “StratBox,” a regulatory sandbox initiative for licensed crypto-asset service providers. The sandbox aims to allow approved firms to test and launch innovative crypto-related products and services under strict regulatory oversight.
Terry Ridon, convenor of Infrawatch, noted, “The sandbox model supports innovation but only for regulated and licensed entities. The use of crypto for illicit activities remains rampant particularly on unregulated and unlicensed firms, and the government should crackdown on firms operating in the Philippine market.”
He acknowledged that while StratBox is a progressive step in the right direction, it must be complemented by stronger enforcement actions to deter fraudulent and abusive practices across the digital asset industry.
The SEC’s new rules represent a critical development in the Philippine crypto landscape, aligning local policy with international trends in digital asset regulation while sending a strong signal to investors and operators alike: innovation will be supported, but not at the cost of regulatory compliance and investor safety.
