The Philippines introduced a complete framework for the Regulatory requirements and considerations to register cryptocurrency tokensEstablishing a double regulator model to govern token activities, licenses and investors’ protections. The framework establishes clear rules for the classification of tokens, Vasp licenses and key compliance obligations.
Twin regulatory model for cryptographic tokens
The new executive adopts a Double regulatory approachWith both Bangko Sentral ng pilipinas (BSP) and the Commission of securities and exchange (dry) Play crucial roles:
- BSP (Bangko Sentral ng pilipinas)
Supervise Virtual asset service providers (VASP)Ensure that activities such as exchange, transfer and custody comply with Consumer protection And AML / CFT standards. - Dry (Securities and Exchange Commission)
Regulates chips classified as securities below Securities Regulatory Code (SRC). It guarantees correctly Recording or exemption offers and token lists.
Key laws impacting cryptographic token lists
The regulatory framework incorporates several legal provisions affecting the emission and tokens operations:
- Circular BIR income memorandum 94-2014 and 85-2018
Treats cryptographic assets as propertyapplication capital gains (6%),, incomeAnd commercial taxes. - RA 10173 – Data confidentiality law
Apply to crypto exchanges and tokens issuers that collect personal data. - RA 10175 – Cybercrime prevention law
Target cybercrime, fraud and other illegal activities in cryptographic space with strict penalties.
License and Vasp obligations
The basins operating in the Philippines must secure BSP approval And respect strict requirements:
- License conditions
Includes the capital requirements, the governance structure, Cybersecurity standardsAnd Consumer protection measures. - Operational obligations
Mandatory Risk score,, Kyc,, AML complianceAnd Classification of tokens analysis. - Transactions monitoring
Exchanges must implement Complies with travel rules Transmissions (depending on FATF 15 recommendation) for crypto transfers $ 1,000 US.
Penalties for non-compliance
The frame requires heavy penalties In order not to meet regulatory standards:
- Dry non-compliance
- Fines ₱ 5 million
- Additional ₱ 2,000 per day For continuous violations
- 7 to 21 years of imprisonment For false voluntary declarations
- Fines ₱ 5 million
- BSP 118 circular violations
- License suspension or revocation
- Fines three times transaction value
- LMA violations
- ₱ 5 million administrative fine
- Until 14 years of imprisonment
- Data confidentiality violations
- Fines between ₱ 500,000 to 5 million ₱ per act
- 1 to 6 years of imprisonment For misuse of sensitive data
- Fines between ₱ 500,000 to 5 million ₱ per act
Final reflections
The new list of Crypto tokens from the Philippines defines a Claire regulatory route For the classification of tokens, VASP licenses, cross -border trading and compliance with exchanges. He underlines me Investor protection,, tax clarityAnd application of cybersecurity and data confidentialitypositioning the country as a Proactive crypto-regional center in Southeast Asia.
