Is Crypto Legal in the Philippines?

Adopted: Yes, via BSP and SEC regulations governing VASPs, as part of efforts to exit the FATF Grey List; described as translating FATF recommendations into national law with a "clear and decisive stance."

Effective Date: Not explicitly stated in available sources; implementation aligns with "recently" introduced guidelines around June 2025, amid growing global enforcement trends.

Sources do not specify a Philippines-specific threshold; FATF recommends USD/EUR 1,000 as a de minimis limit globally, with jurisdictions setting their own (e.g., all transactions or varying below threshold).

Applies to licensed VASPs under BSP and SEC oversight, including those involved in crypto token listings, exchanges (crypto-fiat and crypto-crypto), transfers, issuance/sale of virtual assets, and custodian wallets; requires VASP licensing, capital requirements, and cybersecurity compliance.

VASPs must collect and share originator/beneficiary data (e.g., name, account/wallet number, physical address, unique ID, date/place of birth) for transactions, with sanctions screening against lists like OFAC, UN, EU, and HMT before sending/receiving; interoperability challenges noted globally, but no Philippines-specific protocols detailed.

SEC fines up to ₱5 million (~US$88,000) per violation, plus daily penalties; BSP may impose license suspension/revocation and potential imprisonment; aimed at preventing fraud.

The Securities and Exchange Commission (SEC) is the primary government agency responsible for regulating securities, including digital assets that are classified as securities, in the Philippines. Its authority derives from the Securities Regulation Code (RA 8799) and the Revised Corporation Code (RA 11232) Securities and Exchange Commission.

The SEC operates the electronic System for Payment, Allocation, and Registration of Companies (eSPARC), the official online platform for company registration and licensing applications SEC Company Registration Application.

Under SEC Memorandum Circular No. 2, Series of 2023, the SEC issued rules governing digital asset exchanges operating as securities platforms; however, as of the research date, no dedicated licenses have been issued under this framework.

The Philippines is not a FATF member but is subject to FATF-style mutual evaluations through the Asia/Pacific Group on Money Laundering (APG). The Anti-Money Laundering Act (RA 9160, as amended) and AMLC regulations govern AML compliance Securities and Exchange Commission.

The SEC issues a Certificate of Incorporation (COI) for domestic and one-person corporations, a Certificate of Recording for partnerships, and a License to do Business for foreign corporations. Post-evaluation by the SEC's operating departments determines compliance with applicable laws, notwithstanding certificate issuance SEC Company Registration Application.

Registration data processing is governed by the Data Privacy Act of 2012 (RA 10173). Applicants must consent to the SEC's collection, storage, and processing of personal data as part of the registration process SEC Company Registration Application.

A license is required for entities engaging in securities-related activities. License types include: Certificate of Incorporation (domestic stock/non-stock corporations), Certificate of Recording (partnerships), and License to do Business (foreign corporations) SEC Company Registration Application.

One-Person Corporations (OPC) and domestic corporations (with 2–15 incorporators, who may be natural or juridical persons) must apply via eSPARC SEC Company Registration Application.

Under the Revised Corporation Code (RA 11232), the minimum paid-up capital for stock corporations is PHP 5,000 (approximately USD 85–90 or EUR 80–85, depending on exchange rate). However, higher minimum capital requirements apply for securities brokers/dealers; SEC Memorandum Circular No. 14, Series of 2023 imposes a paid-up capital of PHP 100 million (approximately USD 1.7–1.8 million) for entities applying for a broker-dealer license. Foreign corporations must secure a License to do Business through eSPARC SEC Company Registration Application.

In addition to SEC registration, entities engaging in virtual asset services must register as VASPs with the BSP under BSP Circular No. 1108.

The application process requires applicants to provide true and correct information, pay applicable fees, and submit originally signed/notarized hard copies of requirements once the application form is approved SEC Company Registration Application.

The certificate or license is released upon presentation of proof of payment and completion of beneficial ownership declarations. No specific timeline for processing is stated in the eSPARC application overview SEC Company Registration Application.

The SEC has not issued any dedicated digital asset securities exchange licenses as of the research date. For current licensing status, consult SEC advisories and the SEC's list of registered entities Securities and Exchange Commission.

The SEC's registration process requires applicants to accomplish declarations related to beneficial ownership information as a condition for certificate/license release SEC Company Registration Application.

The Anti-Money Laundering Act (RA 9160, as amended) and AMLC regulations impose customer due diligence, enhanced due diligence, suspicious transaction reporting, and PEP screening obligations on covered persons, including VASPs and securities brokers/dealers. The AMLC requires VASPs to register and comply with record retention requirements under AMLC Regulatory Issuance No. 8, Series of 2023.

The eSPARC facility collects personal information including full name, gender, date of birth, TIN, mobile number, email, address, and nationality for all applicants SEC Company Registration Application.

The Data Privacy Act (RA 10173) governs data processing; the SEC uses reasonable security safeguards to protect personal information SEC Company Registration Application.

Falsity, misrepresentation, or fraud determined during post-evaluation constitutes a valid ground for revocation of registration and/or cancellation of the certificate or license, including forfeiture of filing fees SEC Company Registration Application.

Violations of Title XVI of the Revised Corporation Code (RA 11232) may result in criminal charges against responsible persons, without prejudice to revocation or cancellation of licenses SEC Company Registration Application.

Minor corrections may be cured by filing a Petition for Correction or an application for amendment within ninety (90) calendar days from notice SEC Company Registration Application.

The SEC has issued cease-and-desist orders against unregistered digital asset platforms, including an order against unauthorized cryptocurrency investment schemes. Enforcement actions have included public advisories against operating without SEC registration Securities and Exchange Commission.

The Bureau of Internal Revenue (BIR) has issued Revenue Regulation No. 9-2021, which imposes 12% VAT on digital services provided by both local and foreign providers, including digital asset platforms. Transactions involving digital assets may be subject to income tax under the National Internal Revenue Code (NIRC), as amended by the TRAIN Law (RA 10963).

Income from cryptocurrency trading is generally taxable as regular income or capital gains depending on the holding period and nature of the transaction; individuals are subject to graduated income tax rates (up to 35%), while corporations are subject to 25% corporate income tax.

Documentary stamp tax (DST) may apply to certain transaction documents under the NIRC. Withholding tax obligations apply to payments made to foreign suppliers of digital services under RR 9-2021.

For definitive guidance, consult the BIR's official tax rules and regulations Securities and Exchange Commission.

The SEC has not issued any dedicated licenses for digital asset securities platforms under SEC MC No. 2-2023 as of the research date; consult SEC advisories for updates.

No specific capital requirements for digital asset exchanges under the SEC framework are stated; however, VASP registration requires a minimum capital of PHP 50 million under BSP Circular No. 1108.

Digital asset businesses face ambiguity regarding whether their activities fall under SEC securities jurisdiction or BSP VASP oversight, or both. A dual regulatory approach may be required.

Post-evaluation may result in revocation of certificates even after issuance; physical notarized document submission adds operational complexity SEC Company Registration Application.

The ninety-day cure period for minor corrections is narrow; substantive compliance gaps are not addressed SEC Company Registration Application.

AML obligations are fragmented between SEC (beneficial ownership declarations) and AMLC (CDD, STR, record retention); businesses must independently ensure full compliance.

BIR Revenue Regulation No. 9-2021

RA 10173 (Data Privacy Act of 2012)

RA 11232 (Revised Corporation Code)

RA 8799 (Securities Regulation Code)

RA 9160 (Anti-Money Laundering Act, as amended)

BSP Circular No. 1108 (VASP Registration Guidelines)

SEC Memorandum Circular No. 2, Series of 2023 (Digital Asset Exchanges)

AMLC Regulatory Issuance No. 8, Series of 2023