The Philippine Securities and Exchange Commission (SEC) is finalizing a comprehensive regulatory framework to govern crypto-asset service providers (CASPs) in the country. Aimed at strengthening investor protection and aligning with international standards, the proposed rules introduce stringent requirements for companies seeking to legally offer cryptocurrency-related services to Filipinos.
Registration and capital requirements
To operate legally, all CASPs must register as stock corporations with the SEC. In a significant policy shift, the draft guidelines now require a minimum paid-up capital of ₱100 million, a measure designed to ensure only financially stable entities enter the market.
The SEC also mandates that CASPs maintain a physical presence in the Philippines, with at least four locally based employees. This provision aims to enhance accountability and regulatory enforcement.
As part of the registration process, CASPs must submit a detailed dossier that includes:
A comprehensive business plan and risk assessment
Information on IT infrastructure and cybersecurity protocols
Organizational structure and board resolutions
Proof of compliance with anti-money laundering (AML) and combating the financing of terrorism (CFT) regulations
Public offering and disclosure obligations
Firms intending to publicly offer crypto-assets must file full disclosure documents with the SEC at least 30 days before any marketing or sales activities. These documents must clearly detail:
The identity of the issuer and project stakeholders
The underlying technology and tokenomics
All associated investment risks
Explicit warnings about the potential loss of the entire investment
Cybersecurity and ongoing compliance
A key element of the draft rules is the implementation of a cybersecurity framework consistent with the National Cybersecurity Plan. CASPs will be required to undergo regular third-party audits to assess their systems’ resilience against hacking and other cyber threats.
Additionally, periodic AML compliance reviews will be mandatory to prevent the misuse of crypto platforms for illicit transactions or terrorist financing.
Regulatory sandbox to support innovation
To balance oversight with innovation, the SEC has introduced a Regulatory Sandbox Framework. This allows CASPs to trial new products and services under controlled conditions, with temporary exemptions from certain regulatory requirements.
Timeline for implementation
The SEC concluded a public consultation on April 26, 2025. The final version of the guidelines is expected to be released in the coming weeks, paving the way for full implementation later this year.
As the Philippines’ crypto sector continues to expand, the new rules represent a major step toward formalizing the digital asset space, safeguarding investors, and reinforcing the financial system’s integrity.
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