Philippines bans privacy coins, tightens crypto rules

The BSP has banned privacy coins on licensed Philippine exchanges and imposed stricter due diligence and delisting rules for all tokens to boost compliance and consumer protection.

The Bangko Sentral ng Pilipinas (BSP) has introduced new regulations for virtual asset service providers (VASPs) in the Philippines. These rules require VASPs to enhance their due diligence, monitoring, and delisting procedures for all cryptocurrencies offered to customers. VASPs must now assess tokens using six criteria: issuer background, market maturity, use case and transparency, traceability and security, redemption and liquidity reserves, and legal compliance. Exchanges are required to set clear delisting thresholds and conduct ongoing reviews, including checks on corporate documents and beneficial ownership. Importantly, the BSP has explicitly banned the listing or support of privacy coins—cryptocurrencies designed to obscure transaction details—on regulated platforms. This move aims to strengthen consumer protection, improve anti-money laundering compliance, and ensure a more regulated crypto environment in the Philippines.