Philippines Introduces Strict Rules for Crypto Token Listings
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The post Philippines Introduces Strict Rules for Crypto Token Listings appeared first on Coinpedia Fintech News The Philippines has introduced a comprehensive framework for the Regulatory Requirements and Considerations for Listing Cryptocurrency Tokens, establishing a twin-regulator model to govern token activities, licensing, and investor protections. The framework sets clear rules for token classification, VASP licensing, and key compliance obligations. Twin Regulatory Model for Crypto Tokens The new framework adopts a dual regulatory approach, with both the Bangko Sentral ng Pilipinas (BSP) and the Securities and Exchange Commission (SEC) playing crucial roles: BSP (Bangko Sentral ng Pilipinas) Oversees Virtual Asset Service Providers (VASPs), ensuring that activities such as exchange, transfer, and custody comply with consumer protection and AML/CFT standards. SEC (Securities and Exchange Commission) Regulates tokens classified as securities under the Securities Regulation Code (SRC). It ensures proper registration or exemption of token offerings and listings. Key Laws Impacting Crypto Token Listings The regulatory framework incorporates several legal provisions affecting token issuance and operations: BIR Revenue Memorandum Circulars 94-2014 & 85-2018 Treats crypto assets as property, applying capital gains (6%), income, and business taxes. RA 10173 – Data Privacy Act Applies to crypto exchanges and token issuers collecting personal data. RA 10175 – Cybercrime Prevention Act Targets cybercrime, fraud, and other illegal activities in the crypto space with strict penalties. VASP Licensing and Obligations VASPs operating in the Philippines must secure BSP approval and comply with strict requirements: Licensing Conditions Includes capital requirements, governance structure, cybersecurity standards, and consumer protection measures. Operational Obligations Mandatory risk scoring, KYC, AML compliance, and token classification analysis. Transaction Monitoring Exchanges must implement Travel Rule-compliant transmissions (as per FATF Recommendation 15) for crypto transfers over US$1,000. Penalties for Non-Compliance The framework imposes heavy penalties for failing to meet regulatory standards: SEC Non-Compliance Fines up to ₱5…
Filed under: News - @ June 19, 2025 10:28 am