The Bangko Sentral ng Pilipinas (BSP) has implemented stricter regulations for virtual asset service providers (VASPs), mandating enhanced due diligence, ongoing surveillance, and explicit delisting procedures for cryptocurrencies available to the public. This move is part of a broader effort to reinforce oversight of the digital asset landscape in the Philippines.
Under the latest directive, VASPs must establish a comprehensive framework to evaluate tokens before listing. The criteria cover six key areas: the background of the issuer, market maturity, practical use cases, transparency and security measures, redemption and liquidity processes, and adherence to legal standards. Exchanges are now expected to collect detailed information to gauge the quality and risk profile of each asset.
To assess issuer credibility, the central bank advises reviewing corporate documents, ownership structures, audited financial statements, beneficial ownership details, and the fitness of directors and officers. Additionally, potential conflicts of interest involving issuers, regulators, or government officials must be examined.
Market maturity is evaluated through metrics like market capitalization, trading volume, operational history, exchange support, and the number of on-chain holders. These indicators help determine whether an asset has sufficient market activity and liquidity.
Stablecoins and fiat-backed tokens face extra scrutiny. Exchanges may need to verify token issuance, redemption mechanisms, and minting or burning processes, as well as the stability mechanisms in place. The BSP emphasizes that reserve composition must support redemption requests, and project whitepapers should be easily accessible, detailing tokenomics, supported blockchains, goals, purchasing methods, and risks related to money laundering, cybersecurity, governance, liquidity, and consumer protection.
Beyond initial approval, VASPs must continuously monitor listed assets and define triggers for suspension or delisting. Tokens may be removed due to adverse market events, cybersecurity incidents, legal violations, misleading disclosures, consumer protection issues, market abuse, or abnormal price swings. The central bank insists on immediate action when serious risks emerge.
The BSP reiterates that privacy-focused cryptocurrencies remain banned from listing or support by licensed VASPs.
These rules come as Philippine regulators refine governance for digital asset firms. Recent developments include Binance’s attempt to re-enter the market via the SEC’s sandbox program, though the BSP notes that sandbox participation does not replace the need for a VASP license, which Binance and its partner currently lack.