The Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, has officially approved two new cryptocurrency exchanges to offer peso-to-digital asset trading services. This strategic move marks another milestone in the country’s evolving fintech landscape and signals growing institutional acceptance of blockchain-based financial platforms.
The newly authorized platforms—Virtual Currency Philippines, Inc. and ETranss—are now permitted to facilitate the exchange of Philippine pesos for virtual currencies. According to Chuchi G. Fonacier, Deputy Governor of BSP, this certification supports broader financial innovation while maintaining regulatory oversight.
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Expanding the Local Crypto Ecosystem
With this approval, Virtual Currency Philippines, Inc. and ETranss have joined forces with existing licensed operators such as Rebit.ph, Betur, Inc., and BloomSolutions to expand accessible on-ramps for Filipinos entering the crypto economy. These integrations enhance liquidity and user accessibility, particularly for remittances and cross-border transactions where speed and cost-efficiency are critical.
Fonacier emphasized that digital assets offer significant advantages over traditional banking systems: faster settlement times, reduced transaction fees, and greater financial inclusion—especially in rural and underserved areas. However, she also highlighted that BSP remains cautious about key risks associated with cryptocurrencies, including price volatility, potential use in illicit activities, and cybersecurity threats.
As part of its risk management framework, BSP is refining regulations around wallet providers. While some initial discussions considered classifying certain crypto firms as e-money issuers—a category requiring stricter capital and compliance standards—the central bank opted instead for a more flexible, innovation-friendly approach.
“We are currently refining the rules… If your business model includes electronic wallets, there will be additional requirements, but an e-money license isn’t automatic or always required,” said Fonacier.
This streamlined registration path aims to encourage responsible innovation by lowering barriers for new market entrants without compromising consumer protection.
Regulatory Oversight and Anti-Money Laundering Measures
In tandem with expanding access, regulatory scrutiny is tightening. The Anti-Money Laundering Council (AMLC) has announced it will intensify monitoring of cryptocurrency transactions as part of its national strategy to combat illicit financial flows.
All licensed exchanges must now report covered transactions and flag any activity deemed suspicious. This aligns the crypto sector more closely with traditional financial institutions under the country’s anti-money laundering framework.
These measures reflect a balanced regulatory philosophy: fostering innovation while safeguarding the integrity of the financial system. For users and investors, this means increased transparency and trust in domestic crypto platforms.
Rising Adoption and Market Growth
Data shows a sharp rise in local demand for crypto services. According to BusinessWorld, peso-denominated crypto trading volume has surged in recent years. During the first quarter of this year alone, registered exchanges processed approximately $36 million in monthly transactions.
This growing adoption is fueled by several factors:
- High overseas worker remittance volumes seeking low-cost transfer options
- Increasing smartphone penetration and internet access
- A young, tech-savvy population open to alternative financial tools
Additionally, in April 2025, the Philippine government authorized ten blockchain-focused companies to operate within the Cagayan Economic Zone (CEZ). These firms benefit from tax incentives in exchange for creating local jobs and making substantial investments—each required to invest at least $1 million within two years and pay up to $100,000 in licensing fees.
Such policies demonstrate a national commitment to positioning the Philippines as a competitive hub for blockchain innovation in Southeast Asia.
Regulatory Clarity on Digital Assets
Regulatory bodies across the Philippines are working toward clearer definitions and frameworks. In late 2024, the Securities and Exchange Commission (SEC) signaled plans to evaluate whether certain digital tokens used locally should be classified as securities—a move that could bring them under existing investor protection laws.
Earlier that year, BSP formally recognized Bitcoin as a legitimate payment method, allowing merchants to accept it under specific guidelines. While not legal tender, this acknowledgment gives Bitcoin a formal status in commercial transactions when both parties agree.
These developments collectively point to a maturing regulatory environment where innovation is not stifled but guided through structured oversight.
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Frequently Asked Questions (FAQ)
Q: Are cryptocurrency exchanges legal in the Philippines?
A: Yes. The Bangko Sentral ng Pilipinas regulates virtual currency exchanges and requires licensing for any platform offering peso-to-crypto trading services.
Q: Can I use Bitcoin to pay for goods and services in the Philippines?
A: While not legal tender, Bitcoin is recognized as a valid form of payment when accepted by merchants. Several businesses, especially online retailers and tech startups, accept Bitcoin under BSP guidelines.
Q: How does the Philippines regulate crypto-related financial crimes?
A: Crypto exchanges fall under the Anti-Money Laundering Act. They must verify customer identities, monitor transactions, and report suspicious activities to the AMLC.
Q: What protections do users have when using licensed exchanges?
A: Licensed platforms must comply with strict operational, security, and reporting standards set by BSP. This includes safeguarding user funds and ensuring system resilience against cyber threats.
Q: Is there tax on cryptocurrency transactions in the Philippines?
A: Yes. The Bureau of Internal Revenue treats cryptocurrencies as property, meaning capital gains from trades may be subject to taxation. Users are encouraged to maintain accurate records.
The Road Ahead for Philippine Crypto Regulation
The Philippines is steadily building a comprehensive regulatory framework that balances innovation with stability. By certifying new exchanges, refining wallet provider rules, and enhancing AML compliance, BSP and other agencies are laying the groundwork for sustainable growth in the digital asset space.
As adoption continues to climb and global interest in blockchain technology expands, the country is well-positioned to become a regional leader in inclusive fintech solutions.
For entrepreneurs, developers, and investors alike, the Philippine market offers compelling opportunities—backed by proactive regulation and strong grassroots demand.
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