Philippines Tightens Rules for Crypto Exchanges
Date: 2025-06-13 Author: Gabriel Deangelo Categories: IN WORLD
The Philippines Securities and Exchange Commission (SEC) has officially introduced new requirements for crypto companies operating in the country. Under the regulations, which came into effect on June 12, 2025, all crypto asset service providers (CASPs), including overseas platforms that serve Filipino users, must obtain a license and comply with strict rules.
Such companies must now open a branch in the country with a minimum authorized capital of 100 million pesos (about $1.8 million), have a physical office, segregate client assets from their own, and regularly report on their activities. They are also subject to joint supervision by the SEC and the Anti-Money Laundering Council.
The SEC reserves the right to request documentation on any digital asset, including its description, risks, and the technology used. However, some companies may have exceptions: the regulator will be able to approve the registration of organizations with less capital based on certain criteria.
Other requirements include the implementation of a transaction monitoring system, compliance with KYC (Know Your Customer) procedures, and mandatory quarterly reporting on risk assessments. Moreover, all information about users and transactions must be stored domestically, which creates additional complications, especially for cloud solutions such as AWS or Microsoft Azure, whose data centers may be located outside the Philippines.
These innovations make launching crypto services in the local market more labor-intensive and costly. The introduction of strict security and data localization standards reflects the authorities' desire to strengthen control over digital finance.
Context: The measures of the Philippines SEC coincide with the actions of other Asian regulators. For example, earlier in June, the Bank of Singapore banned local crypto companies from providing services outside the country, and the SEC of Thailand began blocking unregulated crypto exchanges, including Bybit, OKX, and CoinEx.
A new regulatory wave in Southeast Asia signals a significant tightening of approaches to the crypto market, especially in the areas of investor protection and financial crime prevention.
