Back to Analyses

Philippines

Retail_Trading_Status

Allowed-Regulated Unknown
Edit
Analysis ID
#493
Version
Latest
Created
2025-06-26 13:17
Workflow Stage
Live

Executive Summary

Cryptocurrency trading is legal and regulated in the Philippines. The primary regulators are the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC), which oversee Virtual Asset Service Providers (VASPs) and Crypto-Asset Service Providers (CASPs), respectively. These entities are subject to AML/KYC requirements and licensing. While there isn't a dedicated cryptocurrency tax law, income derived from cryptocurrency transactions is generally considered taxable under the National Internal Revenue Code.

Key Pillars

The primary regulators are the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). The regulatory framework includes AML/KYC compliance, licensing for Virtual Asset Service Providers (VASPs) and Crypto-Asset Service Providers (CASPs), and adherence to BSP Circulars (e.g., No. 944, No. 1108) and SEC Rules and Guidelines for CASPs. VASPs must obtain a license from the BSP, while CASPs must register with the SEC and meet minimum paid-up capital requirements.

Landmark Laws

  • BSP Circular No. 944 (2017): Established guidelines for Virtual Currency Exchanges (VCEs), requiring registration with the BSP and implementation of AML/CTF measures.
  • BSP Circular No. 1108 (2021): Provided the Guidelines for Virtual Asset Service Providers (VASPs), broadening the scope of regulated activities and requiring a license from the BSP to operate.
  • SEC Rules and Guidelines for Crypto-Asset Service Providers (CASPs) (May 30, 2025): Mandates that CASPs must register with the SEC, maintain a minimum paid-up capital of PHP 100 million, have a physical office in the Philippines, and adhere to strict AML/CFT procedures.

Considerations

Cryptocurrencies are treated as virtual assets (VAs). Income derived from cryptocurrency transactions is generally considered taxable under the National Internal Revenue Code, with potential capital gains tax up to 15%. Both the BSP and SEC have issued advisories warning the public about the risks associated with cryptocurrencies and the importance of dealing with registered entities. The SEC requires CASPs to maintain a minimum paid-up capital of PHP 100 million (excluding crypto assets).

Notes

In September 2022, the BSP imposed a three-year moratorium on new VASP license applications, expected to expire in September 2025. Coordination between the BSP and SEC is ongoing to align their rules. The government generally has a positive, albeit cautious, stance towards cryptocurrency and blockchain technology. The BIR has not yet issued specific guidelines on the classification of cryptocurrencies and the taxation of income earned from such.

Detailed Explanation

Individual citizens and residents in the Philippines are legally permitted to buy, sell, and hold cryptocurrencies, subject to a developing regulatory framework enforced by the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC). The BSP was the first to issue formal regulations for “virtual currencies” (VCs), now referred to as virtual assets (VAs). In 2017, BSP Circular No. 944 established guidelines for Virtual Currency Exchanges (VCEs), requiring them to register with the BSP and implement Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures, as well as consumer protection safeguards. This circular acknowledged virtual currencies as a valid payment method but not as legal tender. In 2021, the BSP expanded its oversight with Circular No. 1108, which provided the Guidelines for Virtual Asset Service Providers (VASPs). This broadened the scope of regulated activities beyond simple exchanges to include services like custodial services, transfers, and brokering. VASPs are required to obtain a license from the BSP to operate; as of May 2025, there were 13 companies holding VASP licenses. However, in September 2022, the BSP imposed a three-year moratorium on new VASP license applications to assess the evolving market and refine its regulatory approach; this moratorium is expected to expire in September 2025. More recently, on May 30, 2025, the Philippine SEC released its Rules and Guidelines for Crypto-Asset Service Providers (CASPs). These rules mandate that CASPs must register with the SEC, maintain a minimum paid-up capital of PHP 100 million (excluding crypto assets), have a physical office in the Philippines, and adhere to strict AML/CFT procedures. The SEC rules also stipulate that crypto-assets cannot be offered or sold in the Philippines without complying with disclosure requirements, and if a crypto-asset qualifies as a security, it requires a registration statement approved by the SEC. Retail investors are able to trade cryptocurrencies through BSP-licensed VASPs and SEC-registered CASPs, which are obligated to perform Know Your Customer (KYC) procedures and monitor transactions to prevent illicit activities. The BSP also implemented the

Summary Points

Okay, here's the regulatory analysis report on Retail_Trading_Status in the Philippines, converted into a clear, well-structured bullet point format for easy human readability:

Retail Cryptocurrency Trading in the Philippines: Regulatory Status (2025)

I. General Status:

  • Allowed-Regulated: Individual citizens and residents are legally permitted to buy, sell, and hold cryptocurrencies. This activity is subject to regulation.

II. Key Regulatory Bodies & Roles:

  • Bangko Sentral ng Pilipinas (BSP):
    • Primary regulator of Virtual Asset Service Providers (VASPs).
    • Issues licenses to VASPs.
    • Enforces Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures.
    • Focuses on consumer protection and financial stability.
    • Acknowledges virtual currencies as a valid payment method, but not legal tender.
  • Securities and Exchange Commission (SEC):
    • Regulates Crypto-Asset Service Providers (CASPs).
    • Requires CASPs to register with the SEC.
    • Oversees crypto-assets that qualify as securities.
    • Ensures disclosure requirements are met for crypto-asset offerings.
    • Works to bring structure, transparency, and accountability to the crypto market.

III. Important Legislation & Regulations:

  • BSP Circular No. 944 (2017):
    • Established guidelines for Virtual Currency Exchanges (VCEs).
    • Required registration with the BSP.
    • Mandated AML/CTF measures and consumer protection safeguards.
  • BSP Circular No. 1108 (2021):
    • Provided guidelines for Virtual Asset Service Providers (VASPs).
    • Expanded the scope of regulation to include custodial services, transfers, and brokering.
    • Required VASPs to obtain a license from the BSP.
  • SEC Rules and Guidelines for Crypto-Asset Service Providers (CASPs) (May 30, 2025):
    • Mandates CASPs to register with the SEC.
    • Requires a minimum paid-up capital of PHP 100 million (excluding crypto assets).
    • Requires a physical office in the Philippines.
    • Requires adherence to strict AML/CFT procedures.
    • Requires disclosure documents for crypto-asset offerings and sales.
    • Requires registration statement approved by the SEC if a crypto-asset qualifies as a security.

IV. Requirements for Compliance:

  • Registration/Licensing:
    • VASPs must obtain a license from the BSP.
    • CASPs must register with the SEC.
  • Capital Requirements:
    • CASPs must maintain a minimum paid-up capital of PHP 100 million (excluding crypto assets).
  • Physical Presence:
    • CASPs must have a physical office in the Philippines.
  • AML/CTF:
    • VASPs and CASPs must implement and adhere to strict Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) procedures.
    • Includes Know Your Customer (KYC) procedures.
    • Monitoring transactions for suspicious activities.
    • Submitting regular reports to the SEC and the AML Council (for CASPs).
  • Disclosure:
    • Crypto-assets cannot be offered or sold without filing a disclosure document with the SEC.
  • Registration of Securities:
    • If a crypto-asset qualifies as a security, it requires a registration statement approved by the SEC.
  • Travel Rule:
    • Implemented by the BSP in 2018.
    • Requires sender and recipient information for crypto transactions above PHP 50,000.

V. Notable Restrictions or Limitations:

  • VASP License Moratorium:
    • The BSP imposed a three-year moratorium on new VASP license applications in September 2022.
    • Moratorium expected to expire in September 2025.
  • Not Legal Tender:
    • Cryptocurrencies are legally accepted but do not have the status of legal tender.
  • Licensing Required:
    • Issuing, selling, or promoting crypto assets requires a license from the SEC.
  • Unlicensed Platforms:
    • Ongoing efforts to crack down on unlicensed and unregulated cryptocurrency platforms.

VI. Taxation:

  • Taxable Income: Income derived from cryptocurrency transactions is generally considered taxable under the National Internal Revenue Code.
  • Capital Gains Tax (CGT): Gains from trading or investing in crypto may be subject to income tax or capital gains tax, potentially up to 15%.
  • Reporting Requirement: Taxpayers are expected to report these gains on their annual tax returns.
  • Lack of Specific Guidelines: The Bureau of Internal Revenue (BIR) has not yet issued specific guidelines on the classification of cryptocurrencies and the taxation of income earned from such.

VII. Recent Developments or Changes:

  • SEC's CASP Framework (May 30, 2025): Introduction of rules and guidelines for Crypto-Asset Service Providers (CASPs).
  • Dual Regulatory Oversight: Move towards a more comprehensive and dual regulatory oversight of the digital asset space by the BSP and SEC.
  • Coordination: Ongoing coordination between the BSP and SEC to align their rules and ensure a clear regulatory environment.
  • Public Warnings: Both the BSP and SEC have issued advisories warning the public about the risks associated with cryptocurrencies and the importance of dealing with registered entities.

Full Analysis Report

Report on the Current Status of Retail Cryptocurrency Trading in the Philippines

Date: 2025-06-26

Topic: Retail_Trading_Status

Description: Assess whether individual citizens and residents in the country are legally permitted to buy, sell, and hold cryptocurrencies. Detail the regulatory environment surrounding this activity (e.g., KYC/AML requirements imposed on platforms, general warnings issued).

1. Identified Current Status:
Allowed-Regulated

2. Detailed Narrative Explanation:

Individual citizens and residents in the Philippines are legally permitted to buy, sell, and hold cryptocurrencies. This activity is subject to a developing but increasingly comprehensive regulatory framework primarily enforced by the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) of the Philippines.

Historically, the BSP was the first to issue formal regulations for "virtual currencies" (VCs), now often referred to as virtual assets (VAs). In 2017, BSP Circular No. 944 established guidelines for Virtual Currency Exchanges (VCEs), requiring them to register with the BSP and implement Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) measures, as well as consumer protection safeguards. This circular acknowledged virtual currencies as a valid payment method, although they are not considered legal tender.

In 2021, the BSP expanded its oversight with Circular No. 1108, which provided the Guidelines for Virtual Asset Service Providers (VASPs). This broadened the scope of regulated activities beyond simple exchanges to include services like custodial services, transfers, and brokering. VASPs are required to obtain a license from the BSP to operate. As of May 2025, there were 13 companies holding VASP licenses. However, in September 2022, the BSP imposed a three-year moratorium on new VASP license applications to allow the regulator to assess the evolving market and refine its regulatory approach; this moratorium is expected to expire in September 2025.

More recently, the Philippine SEC has taken significant steps to regulate the broader crypto-asset ecosystem, particularly aspects related to securities and investments. On May 30, 2025, the SEC released its Rules and Guidelines for Crypto-Asset Service Providers (CASPs). These rules mandate that CASPs must register with the SEC, maintain a minimum paid-up capital of PHP 100 million (excluding crypto assets), have a physical office in the Philippines, and adhere to strict AML/CFT procedures. The SEC rules also stipulate that crypto-assets cannot be offered or sold in the Philippines without complying with disclosure requirements, and if a crypto-asset qualifies as a security, it requires a registration statement approved by the SEC. These new SEC regulations aim to bring more structure, transparency, and accountability to the crypto market.

Retail investors are therefore able to trade cryptocurrencies through BSP-licensed VASPs and, going forward, SEC-registered CASPs. These platforms are obligated to perform Know Your Customer (KYC) procedures and monitor transactions to prevent illicit activities. The BSP also implemented the "Travel Rule" in 2018, requiring sender and recipient information for crypto transactions above PHP 50,000.

Regarding taxation, while there isn't a dedicated cryptocurrency tax law yet, income derived from cryptocurrency transactions is generally considered taxable under the National Internal Revenue Code. Gains from trading or investing in crypto may be subject to income tax or capital gains tax, potentially up to 15%. The Bureau of Internal Revenue (BIR) expects taxpayers to report these gains on their annual tax returns.

The Philippine government generally has a positive, albeit cautious, stance towards cryptocurrency and blockchain technology, aiming to foster innovation while ensuring consumer protection and financial stability. Both the BSP and SEC have issued advisories warning the public about the risks associated with cryptocurrencies and the importance of dealing with registered entities. There are ongoing efforts to crack down on unlicensed and unregulated cryptocurrency platforms.

The introduction of the SEC's CASP framework alongside the BSP's VASP regulations signifies a move towards a more comprehensive and dual regulatory oversight of the digital asset space in the Philippines. Coordination between the BSP and SEC is ongoing to align their rules and ensure a clear regulatory environment.

3. Specific, Relevant Text Excerpts:

  • Bangko Sentral ng Pilipinas (BSP) & Virtual Asset Service Providers (VASPs):

    • "According to Section 902-N of the Manual of Regulations for Non-Bank Financial Institutions (MORNBFI), virtual assets (VAs) may refer to any type of digital-unit that can be digitally traded, or transferred, and can be used for payment or investment purposes. Cryptocurrencies are treated as VAs exchanged through a VASP. As of May 2025, 13 companies hold VASP licenses."
    • "In 2017, the BSP issued Circular No. 944, which established guidelines for virtual currency exchanges operating in the Philippines. Under the circular, virtual currency exchanges are required to register with the BSP, implement anti-money laundering (AML) and counter-terrorism financing (CTF) measures, and comply with reporting requirements."
    • "Building upon these initial regulations, the BSP introduced the Guidelines for Virtual Asset Service Providers (VASPs) in 2021. These guidelines established a comprehensive regulatory framework for virtual currency exchanges in the Philippines. As part of the framework, VASPs must obtain a license from the BSP before commencing operations in the country."
    • "Recall that last September 2022, the Bangko Sentral ng Pilipinas (BSP) halted registrations for new Virtual Asset Service Provider (VASP) licenses... Meanwhile, the BSP moratorium for VASP licenses is set to expire in 2025."

  • Securities and Exchange Commission (SEC) & Crypto-Asset Service Providers (CASPs):

    • "But on May 30, the Securities and Exchange Commission (SEC) finally released their Crypto-Asset Service Provider (CASP) Rules and Guidelines, which aims to provide further regulations on cryptocurrency service providers and crypto-adjacent firms."
    • "Under these rules, crypto-assets generally cannot be offered or sold in the Philippines without filing a disclosure document with the SEC and publishing it at least thirty days before any marketing or offering. If a crypto-asset qualifies as a security, it requires a registration statement approved by the SEC."
    • "Under the newly issued SEC Memorandum Circulars Nos. 4 and 5, a crypto asset is defined as a digitally secured form of value or right that runs on blockchain or similar tech. If a token behaves like a financial product or security under Philippine law, it's now subject to SEC regulation."
    • "To make sure only serious and capable firms enter the market, the SEC has set a minimum paid-up capital requirement of PHP 100 million, excluding any form of crypto. Crypto platforms must also maintain a physical office in the Philippines..."
    • "The SEC isn't mincing words, as currently, if you want to issue, sell, or promote crypto assets in the Philippines, you need to get licensed first."

  • Legality and Accessibility for Individuals:

    • "Yes, cryptocurrency trading is legal in the Philippines. The BSP's Circular No. 1108 provides guidelines for VASPs, treating cryptocurrencies as virtual assets. To operate legally, VASPs need to be registered with the BSP. The SEC is also developing further licensing requirements for crypto trading entities."
    • "In the Philippines, the use of cryptocurrency is legally accepted, but it doesn't hold the status of legal tender."
    • "People can buy, sell, and hold Bitcoin, but the Bangko Sentral ng Pilipinas (BSP) says it's not legal for paying bills or shopping."

  • KYC/AML Requirements:

    • "Furthermore, the guidelines emphasize the importance of implementing effective Know Your Customer (KYC) and AML/CTF measures. VASPs must collect customer identification information and actively monitor transactions to detect and report suspicious activities."
    • "Adhere to strict anti-money laundering (AML) procedures and submit regular reports to the SEC and the AML Council." (Pertaining to CASPs under new SEC rules)

  • Taxation:

    • "Despite a lack of clear guidelines from the Bureau of Internal Revenue (BIR), investors can expect their cryptocurrency-related revenue to be taxable. The principal kind of taxation applied to cryptocurrency transactions is the capital gains tax (CGT), which can reach up to 15%, but the particular rate may vary based on the type of transaction."
    • "Filipino citizens who possess or trade cryptocurrencies in the Philippines are required to record any capital gains on their annual tax returns; therefore these profits must be included in income tax returns."
    • "In the Philippines, however, the BIR has not yet issued specific guidelines on the classification of cryptocurrencies and the taxation of income earned from such. Nonetheless, our Tax Code provides that for purposes of computation of tax, gross income means all income derived from whatever source. Therefore, income arising from cryptocurrency transactions should be included in the income of the taxpayer that will be subjected to income tax."

4. Direct, Accessible URL Links to Specific Sources:

  • BusinessWorld Online (2025-06-09): From moratorium to momentum: How 2025 could transform Philippine cryptocurrency - https://www.bworldonline.com/special-reports/2024/06/09/597148/from-moratorium-to-momentum-how-2025-could-transform-philippine-cryptocurrency/ (Note: While the article is dated June 9, 2024, it discusses developments and rules for 2025. The search results indicate it was indexed under 2025-06-09, likely a typo in the search result display. The content itself refers to May 2025 SEC rules.)
  • TradingView (2025-06-25): Crypto Regulations in the Philippines 2025 - https://www.tradingview.com/news/tradingview/crypto-regulations-in-the-philippines-2025/
  • Dezan Shira & Associates (2024-10-08): Cryptocurrency in the Philippines: Adoption, Regulations, and Taxation Insights - https://www.aseanbriefing.com/news/cryptocurrency-in-the-philippines-adoption-regulations-and-taxation-insights/
  • BitPinas (2025-06-11): New SEC Rules Tighten Control on Crypto Platforms in the Philippines - https://bitpinas.com/news/new-sec-rules-tighten-control-on-crypto-platforms-in-the-philippines/
  • Kittelson & Carpo Consulting (2025-02-18): Regulation of Cryptocurrencies and High-Risk Industries in the Philippines - https://kittelsoncarpo.com/blog/regulation-of-cryptocurrencies-and-high-risk-industries-in-the-philippines/
  • BitPinas (2025-06-02): PH SEC Final Crypto Rules Targets “Educational” Events, Ads, Airdrop, & Content - https://bitpinas.com/news/ph-sec-final-crypto-rules-targets-educational-events-ads-airdrop-content/
  • AInvest (2025-06-25): Philippines Enacts Strict Crypto Regulations Boosting 10.49% Adoption Rate - https://www.ainvest.com/news/philippines-enacts-strict-crypto-regulations-boosting-10-49-adoption-rate-2631000i0c675677881c6374/
  • Regulation Asia (2025-06-09): Philippines SEC Finalises Regulatory Framework for Crypto Industry - https://www.regulationasia.com/philippines-sec-finalises-regulatory-framework-for-crypto-industry/
  • Manila Standard (2025-05-28): Regulators urged to crack down on unlicensed cryptocurrency platforms - https://manilastandard.net/news/national/314446530/regulators-urged-to-crack-down-on-unlicensed-cryptocurrency-platforms.html
  • CoinStats (referencing Coinfomania): Cryptocurrency Regulations in the Philippines... - https://coinstats.app/news/m4X_E5-t4T_Cryptocurrency-Regulations-in-the-Philippines-Explained/ (The exact publication date is "2M ago" from the search result date of June 26, 2025, suggesting April/May 2025)
  • Tookitaki (2023-05-23): Understanding Cryptocurrency Regulations in the Philippines - https://www.tookitaki.com/news-views/understanding-cryptocurrency-regulations-in-the-philippines/
  • FilePino (2024-05-02): Navigating the Legal Landscape of Cryptocurrency and Digital Assets in Philippine Business - https://filepino.com/philippines-business-lawyer/navigating-the-legal-landscape-of-cryptocurrency-and-digital-assets-in-philippine-business/
  • Shoppable Business (2023-12-15): Cryptocurrency Regulations in the Philippines - https://shoppable.business/blog/cryptocurrency-regulations-in-the-philippines
  • Respicio & Co. Law Firm (2025-02-21): Legal Process for Crypto Exchange Licensing in the Philippines - https://www.respicio.ph/blog/crypto-exchange-licensing-philippines
  • CoinGeek (2025-06-25): PH laws, gov’t support drive blockchain adoption: report - https://coingeek.com/ph-laws-govt-support-drive-blockchain-adoption-report/
  • AInvest (2025-06-25): Philippines Implements 15% Capital Gains Tax on Crypto Sales - https://www.ainvest.com/news/philippines-implements-15-capital-gains-tax-on-crypto-sales-2631000i0c675677881c6374/
  • Kryptos.io (2025-02-04): Philippines Crypto Tax Guide 2025 - https://kryptos.io/guides/philippines-crypto-tax-guide
  • Coins.ph (2025-01-27): List of Licensed Cryptocurrency Exchanges in the Philippines - https://coins.ph/blog/regulated-crypto-exchanges-philippines/
  • P&A Grant Thornton (2021-09-14): Taxing income from cryptocurrencies - https://www.grantthornton.com.ph/insights/articles-and-updates1/lets-talk-tax/taxing-income-from-cryptocurrencies/
  • Tiger Brokers (2025): Top 5 Crypto Trading Platforms in the Philippines in 2025 - https://www.tigerbrokers.com.ph/invest/cryptocurrency/best-crypto-trading-platforms-philippines
  • BeInCrypto (2025-03-28): Top 5 Crypto Trading Platforms in the Philippines in 2025 - https://beincrypto.com/learn/best-crypto-exchanges-philippines/

(Note: Some URLs may lead to articles behind paywalls or requiring registration. The information cited is based on the content visible in the search snippets.)

Web Sources (21)

Sources discovered via web search grounding

Search queries used (8)
  • Retail cryptocurrency trading status Philippines 2025
  • Bangko Sentral ng Pilipinas cryptocurrency regulations 2025
  • Philippines SEC cryptocurrency guidelines 2025
  • Are individuals in the Philippines allowed to buy and sell cryptocurrency?
  • KYC AML requirements for cryptocurrency exchanges Philippines
  • Taxation of cryptocurrency in the Philippines for retail investors
  • Legal framework for digital assets Philippines
  • Recent statements from Philippine regulators on cryptocurrency
Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Source

Reviews

No reviews yet

Submit Review

Challenge: Disagree with the analysis | Approval: Confirm it's correct | Refinement: Suggest improvements