New BSP rules put crypto tokens under intense scrutiny in the Philippines
The Bangko Sentral ng Pilipinas (BSP) has introduced stricter requirements for virtual asset service providers (VASPs), requiring them to implement intensive screening, monitoring, and delisting procedures for cryptocurrencies offered to customers.
Summary
- The BSP requires crypto exchanges to conduct a thorough review before introducing tokens and stablecoins into the environment.
- The new rules mandate ongoing monitoring and clearing of delisting triggers for high-risk physical assets.
- Privacy-focused cryptocurrencies remain prohibited as regulators tighten consumer protections and compliance safeguards.
The move comes as regulators continue to tighten oversight of the country’s digital asset market.
The new directive requires VASPs to establish a “rigorous due diligence and approval process” before listing physical assets on their platforms, according to a memorandum issued by BSP Vice Governor Lyn Javier.
The BSP sets broad standards for the listing of tokens
Under the memorandum, VASPs must assess physical assets in all six areas: background of issuers, market maturity, conditions of use, transparency and security, redemption and financing, and compliance. The BSP said exchanges must collect enough information to assess the quality and risks of goods before making them available to customers.
The central bank said exchanges may review corporate documents, ownership structures, audited financial statements, beneficial ownership information, and fitness checks involving company directors and officers. The review process may also include assessing potential conflicts of interest involving issuers, regulators, government officials, or related businesses.
For market maturity, VASPs may assess factors such as market capitalization, trading volume, years of operation, exchange support, and number of chain owners. Regulators said these indicators can help determine whether assets have established market activity and sufficient funds.
Stablecoins and reserve support receive close attention
The BSP has placed more focus on asset-backed and fiat-backed assets. Exchanges may be required to evaluate how tokens are issued, used, created and burned, and the methods used to maintain price stability.
The memorandum also directs the VASPs to review the composition set and ensure that the supporting assets can support the redemption requests. According to the BSP, liquidity, reserve quality, and withdrawal rights are important factors in maintaining market confidence and supporting orderly trading conditions.
The regulator also said that project white papers should be easily accessible to users. These documents should include information on tokenomics, supported blockchains, project goals, procurement methods, and risks related to money laundering, cybersecurity, governance, payments, and consumer protection.
Ongoing monitoring and delisting requirements
Beyond initial listing, the BSP now requires VASPs to continuously monitor listed assets and establish thresholds that may trigger suspension or delisting. The exchange must track whether the goods continue to meet the standards used during the approval process.
Tokens may be suspended or removed due to adverse market developments, cybersecurity incidents, legal violations, misleading disclosures, consumer protection concerns, market abuse, or unusual price movements. The BSP said exchanges should act quickly when major risks arise.
The central bank also confirmed that anonymity-enhancing cryptocurrencies, known as private coins, remain prohibited from being listed or supported by licensed VASPs.
The new rules come amid broader efforts to regulate crypto
The latest moves come as Philippine regulators continue to refine the regulatory framework for digital goods businesses. The BSP’s action follows ongoing efforts by national regulators to ensure that crypto service providers operate under clear standards and strict compliance requirements.
The development also comes soon after Binance sought a regulated path back to the Philippines by partnering with BlockShoals Technologies under the sandbox program of the Philippine Securities and Exchange Commission’s StratBox. As previously reported by crypto.news, Binance said the program will allow it to test services within a monitored regulatory environment.
However, recent reports have shown that neither Binance nor BlockShoals currently holds a VASP license issued by the BSP, the central bank said that participation in the SEC sandbox does not replace the requirements for a license for virtual asset services.
Binance has been pursuing a regulated return to the Philippine market through the SEC’s sandbox framework after facing licensing restrictions in the country.
