Philippines Compliance Report

Generated 2026-09-22

Comprehensive Framework

Regulatory Overview

Regulatory Status: Dedicated crypto/VA legislation, licensing regime, active enforcement
Key Regulator(s): Philippine Securities and Exchange Commission, Anti-Money Laundering Council
Risk Level: medium
Primary Legislation: They are not explicitly classified as e-money or payment tokens; regulation is u, Potentially securities under Section 3 of the Securities Regulation Code (SRC) i
Travel Rule: Adopted — Threshold: $88,000
Tax Reporting: Income tax on crypto gains; BIR treats as property. Personal investment: Limited activity may qualify for capital gains treatment. Business income: Subject to higher ordinary income tax rates. Compensation: Taxed as earned income. No standalone CGT framework exists for crypto; gains from sales (crypto-to-fiat), crypto-to-crypto trades, or exchanges for goods are typically treated as ordinary income rather than capital gains.

Key Facts

aml The Philippines has established a robust anti-money laundering (AML) and counter‑terrorist financing (CFT) framework overseen by the Anti‑Money Laundering Council (AMLC). - Key regulations include Republic Act No. 9160, which mandates customer due diligence (CDD) for financial institutions and other specified entities. The AMLC is responsible for implementing and enforcing these laws, collaborating with international bodies such as the Financial Action Task Force (FATF). Anti‑Money Laundering Act of 2000 (Republic Act No. 9160): Sets forth obligations for reporting suspicious transactions and defines money laundering offenses. Banks and Banking Supervision: The Bangko Sentral ng Pilipinas (BSP) enforces AML/CFT rules for banks under BSP Circular No. 1066. Mutual Evaluation Report (2023): Confirms the Philippines' compliance with FATF standards, though gaps in tax‑related money laundering persist. Financial institutions must register with the Securities and Exchange Commission (SEC) or BSP to operate legally. - Non‑bank financial institutions (e.g., payment service providers, virtual asset exchanges) are subject to licensing under the AMLC’s expanded mandate. Customer Due Diligence (CDD): Includes identity verification, source of wealth determination, and risk assessment for all customers. Ongoing Monitoring: Institutions must continuously monitor transactions against suspicious activity thresholds defined by the AMLC.
enforcement Entity: Binance (world’s largest crypto exchange). Violation: Operating without required authorization under the Crypto Asset Service Provider (CASP) framework. Penalty: Geo-blocking; users given 90 days to exit the platform, with website and app access restricted via coordination with telecom providers. Date: 2024 (successful enforcement establishing pattern for later actions). SEC public advisory and enforcement (no specific circular cited; referenced as prior CASP violation): https://bravenewcoin.com/insights/philippines-sec-targets-major-crypto-exchanges-in-regulatory-crackdown Confirmed in SEC advisory context: https://www.binance.com/en/square/post/27892371667002; https://bitpinas.com/regulation/sec-flags-10/ Entities: OKX, Bybit, KuCoin, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, Poloniex (actively marketing to and serving Filipino users). Violation: Operating without SEC licenses/registrations under CASP Rules and Guidelines (Memorandum Circulars No. 4 and No. 5, effective July 2025); providing/soliciting crypto trading services without authorization.
licensing BSP — VASP licensing, prudential supervision SEC Philippines — Securities token oversight, warnings against unlicensed offerings AMLC — Anti-Money Laundering Council BSP Circular 1108 (2021) — VASP licensing framework BSP Circular 944 (2017) — Virtual currency exchange registration VASP: VASP License from BSP (Circular 1108/2021). PHP 50M (~$900K USD) minimum capitalization. 6-12 months. BSP imposed moratorium on new VASP licenses in 2022 to assess existing licensees; partially lifted 2024. Coins.ph and PDAX are major licensed operators. 60% Filipino ownership may apply. CUSTODY: Included under VASP license; IT risk management requirements EXCHANGE: VASP license — PHP 50M minimum capitalization. High crypto adoption driven by remittances and gaming/play-to-earn (Axie Infinity).
securities 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.
status Philippines regulatory status: comprehensive
tax Income tax on crypto gains; BIR treats as property Personal investment: Limited activity may qualify for capital gains treatment Business income: Subject to higher ordinary income tax rates Compensation: Taxed as earned income No standalone CGT framework exists for crypto; gains from sales (crypto-to-fiat), crypto-to-crypto trades, or exchanges for goods are typically treated as ordinary income rather than capital gains. One 2025 report claims a 15% CGT on crypto sales for fiat or goods/services, but this conflicts with BIR guidance and lacks official confirmation. For business activities (e.g., frequent trading), an optional 8% income tax on gross sales/receipts may apply instead of progressive rates. Regulatory reference: BIR has no categorical revenue issuance on crypto as of recent discussions; gains must be "realized" (e.g., converted to fiat) to be taxable (https://www.bir.gov.ph/tax-info-details for general CGT on capital assets).
travel rule Travel Rule adopted — threshold: PHP 50,000 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.

Sources

This report is AI-generated from publicly available regulatory sources. Last updated: 2026-09-06. View full profile