The Philippine SEC unveils landmark rules on crypto-asset trading and service providers, mandating strict registration, capital requirements, and data transparency to ensure investor protection and market stability.
SEC Tightens Oversight on Crypto Firms with Mandatory Licensing and Disclosure Requirements
The Securities and Exchange Commission (SEC) of the Philippines has issued new rules designed to regulate the issuance, marketing, and trading of crypto-assets, alongside the registration and operations of crypto-asset service providers (CASPs) across the country.
According to the SEC, the move is intended to strike a balance between supporting innovation in the crypto and fintech sectors while ensuring that market integrity and investor protection remain paramount.
Under the newly issued guidelines, a CASP is defined as “a business entity that offers or engages in the provision of one or more crypto-asset services, including the operation of a digital platform that provides such services.”
The SEC clarified that both the CASP Rules and CASP Guidelines will apply to all entities involved in offering crypto-asset services, as well as to third-party service providers that market or promote such services and assets.
The commission is now fully empowered to regulate the activities of CASPs, requiring them to undergo a strict registration process, acquire licenses, and submit necessary disclosures related to their crypto-asset operations and offerings. This includes any marketing or sales efforts related to crypto-asset securities.
“Crypto-assets and crypto-asset securities shall not be sold or offered for sale or distribution in the country without a disclosure document or registration statement, as the case may be, duly filed with and approved by the commission,” the SEC said.
“Similarly, no person or entity shall engage in the marketing or inducement to purchase crypto-assets or crypto-asset services unless they are registered as a corporation and have obtained the necessary licenses from the concerned regulatory agencies, such as the SEC and Bangko Sentral ng Pilipinas,” the commission added.
To qualify for registration, CASPs must be incorporated in the Philippines and possess a minimum paid-up capital of ₱100 million in either cash or property—excluding crypto-assets. A physical office, adequately staffed during regular business hours, is also required.
The application process requires an initial filing fee of ₱50,000. Once registered, CASPs will be subject to annual supervision fees, calculated based on gross revenue from the preceding year.
The SEC also mandates that each registered CASP maintain detailed operational reports, including the total number of active users, daily trading summaries, the number of trades executed, and the total value of crypto-assets settled.
“CASPs must ensure that all available information from reputable or credible sources pertaining to the product/s being traded in the system is provided to investors,” the SEC emphasized.
“CASPs must adhere to the principles of honest, fair and professional business conduct, ensure fair access to their platform and establish a local data center, with specific conditions for offshore IT outsourcing,” it added.
Noncompliance with these new rules, whether by CASPs, third-party service providers, or unregistered firms, may result in enforcement actions by the SEC, which retains jurisdiction over the implementation of all related laws and guidelines.
