Philippines Tightens Crypto Rules With New Industry Crackdown

The Philippines has intensified its oversight of the cryptocurrency sector, introducing new restrictions that target privacy-focused digital assets while expanding enforcement against unregistered trading platforms.

Summary:

BSP banned privacy-focused cryptocurrencies from licensed exchanges.
SEC flagged seven unregistered crypto trading platforms.
Regulators are tightening oversight and compliance standards.

The moves, led by separate financial regulators, mark one of the country’s most comprehensive efforts to align its digital asset framework with international compliance standards and strengthen investor protection measures.

The recent regulatory pivot in the Philippines reflects a broader, global shift toward ‘institutional-grade’ crypto oversight. For the average investor, this is not just about the removal of specific assets; it represents a fundamental change in the ‘trust model’ of Philippine exchanges.

By enforcing strict pre-listing criteria and blocking unregistered platforms, the BSP and SEC are moving toward a ‘walled garden’ ecosystem. While this significantly mitigates risks associated with fraud and illicit financial flows, it also demands that local investors become more proactive in managing their non-custodial wallets if they wish to retain access to the full spectrum of the digital asset market.

BSP Targets Privacy Coins in Major Regulatory Shift

On June 5, 2026, the Bangko Sentral ng Pilipinas (BSP) issued Memorandum No. M-2026-023, introducing a ban on anonymity-enhancing virtual assets across all licensed Virtual Asset Service Providers (VASPs) operating in the country. The measure affects digital assets designed to conceal transaction information, making blockchain activity difficult for regulators and law enforcement agencies to trace.

Although the memorandum does not specifically name individual cryptocurrencies, industry participants widely expect the restrictions to impact privacy-focused tokens such as Monero and Zcash. Licensed exchanges, including major local operators, are now required to remove affected assets from their trading platforms and discontinue related services.

The BSP’s decision does not criminalize ownership of privacy coins. Individuals may continue to hold these assets in personal, non-custodial wallets. However, the restriction significantly reduces access to regulated trading venues, limiting the ability of users to buy, sell, or exchange privacy-focused cryptocurrencies through licensed Philippine platforms.

Regulators argue that anonymity-enhancing technologies create elevated risks for money laundering, terrorist financing, sanctions evasion, and other forms of illicit financial activity. By restricting these assets, the BSP aims to bring the country’s regulatory framework closer to standards promoted by the Financial Action Task Force (FATF), the global watchdog responsible for combating financial crime.

SEC Expands Enforcement Against Unregistered Crypto Platforms

The BSP’s actions follow a separate enforcement initiative launched earlier in the year by the Philippine Securities and Exchange Commission (SEC). In April 2026, the SEC issued an investor advisory warning the public against several cryptocurrency trading platforms that were allegedly operating without the licenses required under the country’s Crypto-Asset Service Provider (CASP) framework.

The regulator identified seven platforms in its advisory: dYdX, Aevo, gTrade, Pacifica, Orderly, Deriv, and Ostium. According to the SEC, these entities had not secured the necessary authorization to solicit investments or provide regulated crypto-related services within the Philippines.

The commission warned that participation in unregistered investment activities may expose users to significant risks, including the absence of regulatory safeguards and legal recourse. The SEC also highlighted potential penalties under the Securities Regulation Code for individuals who promote or facilitate unauthorized investment offerings.

The warning forms part of a broader effort to strengthen oversight of offshore and decentralized crypto platforms that continue to attract Philippine users without establishing a compliant local presence. Authorities have increasingly focused on ensuring that digital asset providers operate within the country’s regulatory framework before serving domestic customers.

Stricter Listing Standards Reshape the Crypto Market

Beyond the privacy coin restrictions and platform enforcement actions, regulators have introduced additional measures that could reshape the Philippine digital asset landscape.

The BSP has implemented a more rigorous pre-listing evaluation framework for crypto assets seeking access to licensed exchanges. Under the new approach, VASPs must conduct comprehensive assessments covering an asset’s security profile, technological design, utility, governance structure, and economic sustainability before making it available to retail investors.

The framework reflects a growing trend among regulators worldwide to place greater responsibility on exchanges for the assets they choose to list. Authorities increasingly expect service providers to evaluate potential risks throughout an asset’s lifecycle rather than relying solely on initial due diligence.

At the same time, the Philippines continues to maintain a moratorium on new VASP licenses, a policy that has been extended through the 2025–2026 period. The restriction limits the number of licensed operators entering the market and allows regulators to focus on supervising existing participants while refining the country’s regulatory framework.

Together, these measures signal a clear shift toward tighter oversight of the cryptocurrency sector. While supporters argue that stronger rules can improve market integrity and investor confidence, critics warn that excessive restrictions may reduce innovation and push some users toward less regulated alternatives.

For now, the direction of travel appears unmistakable. Philippine regulators are moving toward a more controlled digital asset environment, prioritizing transparency, compliance, and financial crime prevention as the country seeks to establish a mature and internationally aligned cryptocurrency market.

The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.

Author

Alexander Zdravkov

Reporter at CoinsPress

Alexander Zdravkov is a market analyst and crypto journalist with interests in economics, broader financial markets and digital assets. His journey into crypto began more than four years ago, driven by a fascination with the rapid evolution of blockchain technology and the transformative potential of decentralized finance. He began analyzing market cycles and identifying emerging trends before they reach the mainstream. He holds a degree in International Relations - a background that helped shape his broader perspective on global economics, geopolitics, and the interconnected nature of modern financial markets. Whether covering the latest developments in the crypto sector or exploring broader macroeconomic themes, Alexander focuses on giving readers context rather than simply repeating headlines. During his career, he has authored more than 10,000 articles covering cryptocurrencies, traditional finance, and global market developments. His work spans everything from Bitcoin and altcoins to macroeconomic trends influencing risk assets worldwide.