Philippines SEC introduces licensing for crypto asset service providers

Digital asset service providers will also be required to file regular reports as part of anti-money laundering efforts

Philippines SEC has introduced mandatory licensing for crypto exchanges

12.06.2025 - 13:40

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3 min

What’s new? The Philippine Securities and Exchange Commission (SEC) has introduced new rules that require crypto asset service providers (CASPs) to obtain licenses and comply with strict disclosure requirements. Also, companies providing services to Filipino clients must register a local branch with a minimum capital of 100 million pesos ($1,8 million).

SEC publication

What else is known? The new guidelines, originally introduced on May 30 in an SEC memorandum, went into effect on June 12. CASPs will be classified as entities subject to joint oversight by the SEC and the Anti-Money Laundering Council.

The rules also require crypto companies to have physical offices, segregate customer assets from their own, and file regular operational reports.

In addition, the SEC will be able to request documentation on any digital asset issued or maintained by the company. Such documents must fully characterize the asset, the associated risks, and its underlying technology.

A capital requirement of 100 million pesos is the standard for CASP registration, but the SEC will exceptionally be able to register smaller firms based on certain criteria.

Operational requirements include transaction monitoring systems, Know Your Customer (KYC) procedures and quarterly reporting of risk assessments.

Nevertheless, the new guidelines may make it technically more difficult for cryptocurrencies to launch. For example, SEC requirements mandate that transaction and customer data be stored “within the geographic boundaries of the Philippines.” This could mean that cloud hosting such as AWS or Azure is not recommended for use.

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Earlier this month, Singapore’s Central Bank banned local crypto firms from providing services overseas, and Thailand’s SEC announced the blocking of exchanges Bybit, 1000X, CoinEx, OKX, and XT since they were operating without registration.

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