Crypto platforms in the Philippines just got a major regulatory shake-up. 

On May 30, the Philippines Securities and Exchange Commission (SEC) issued a new set of rules designed to bring structure, transparency, and accountability to how crypto platforms or also known as crypto-asset service providers (CASPs), operate in the country.

These are the SEC Rules on Crypto-Asset Service Providers (CASP Rules)and the Operations of Crypto-Asset Service Providers (CASP Guidelines).

The new regulations are more than just paperwork as they aim to strike a balance between promoting innovation and making sure the market stays fair, safe, and trustworthy for everyone involved. 

For crypto firms, this means the era of operating in a legal grey area is officially over. 

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. 

A crypto-asset service provider, or CASP, includes any business offering crypto services, whether that’s running an exchange, managing wallets, or even marketing digital assets.

The SEC also now requires these firms to register, disclose critical information, and play by a strict set of operational rules.

No License, No Business 

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. 

Offerings must come with detailed disclosure documents that include all the important stuff. These include tedious information such as who’s behind the crypto, what the risks are, how the technology works, and so on. Companies must publish these documents at least 30 days before any marketing or sales activity begins.

And if you’re a marketer or influencer hyping crypto online, be careful. Unless your content is purely educational and made in good faith, you might be breaking the rules. 

Big Players Also Need to Apply 

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, pay an initial PHP 50,000 filing fee, and be prepared for annual supervision fees based on revenue.

Once firms register, they must submit regular operational reports that detail trading volumes, asset types, and user activity.

On top of that, CASPs need to be authorised before launching any public crypto offerings.

New Rules Focus on Protecting Consumers and Cleaning Up the Space 

A major goal of the new rules is to protect Filipino investors. Under the Anti-Money Laundering Act, CASPs now fall under the “covered persons” category, requiring monitoring by both the SEC and the Anti-Money Laundering Council.

Firms must act professionally, ensure fair access, and provide investors with reliable information on the products they offer. 

Another smart safeguard is the required separation of customer assets from a provider’s own funds. This protects user assets if the company goes under, something global crypto markets have seen too many times already. 

The rules also require CASPs in the Philippines to establish a local data centre, and if they outsource IT functions offshore, there are specific conditions they need to meet.

Setting the Tone for the Future of Crypto Platforms in the Philippines

The SEC has the authority to suspend or revoke the licenses of CASPs that fail to comply. If a company doesn’t use its license within a year or stops operations entirely, it could lose its authorisation.

Those caught breaking the rules face fines up to PHP 10 million, imprisonment for up to five years, or both.

This is a big step for the Philippines as it embraces the digital future while trying to ensure safety and accountability in the crypto space. These rules are about building a healthier environment where innovation can still thrive, but not at the expense of investors or the financial system.

For crypto companies, the message is clear. If you want to play in this space, you’ll need to play by the rules.