The Philippines Issues New Crypto Rules to Protect Public and Maintain Trust

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The Philippine Securities and Exchange Commission (SEC) has introduced a new set of regulations to strengthen oversight of the marketing, issuance, and trading of crypto assets. The regulations also require crypto-asset service providers (CASPs) to register with the SEC.

Published as Memorandum Circular No. 4 and Memorandum Circular No.5, dated May 30, 2025, the new regulations provide rules and guidelines for all CASPs operating in the country, as well as third parties engaged in the marketing of crypto assets and related services. CASPs must register with the SEC, maintain sufficient capital reserves, and adhere to strict operational and marketing standards.

Under the new framework, CASPs will need to be physically incorporated in the Philippines and maintain a minimum paid-up capital of ₱100 million (approximately $1.8 million) in cash or property, excluding crypto assets. They must also implement systems that separate customer assets from corporate holdings and submit regular reports to the SEC and the Anti-Money Laundering Council.

If a CASP does not meet the requirements of the new rules and guidelines, the SEC may suspend their authorization. The SEC also has the power to pursue enforcement actions on CASPs, third-party service providers, or unregistered entities for noncompliance.The Manila Bulletin reports that any person or entity who willfully violates the new rules or guidelines, or any other relevant rules issued by the SEC, may face penalties including imprisonment of up to five years, or a fine up to ₱10 million (approximately $179,000).