The Securities and Exchange Commission (SEC) has issued the rules to regulate the marketing, issuance and trading of crypto-assets in the Philippines.
It issued Memorandum Circular Nos. 4 and 5, Series of 2025. known as the SEC Rules on Crypto-Asset Service Providers (CASP Rules) and the SEC Guidelines on the Operations of Crypto-Asset Service Providers (CASP Guidelines).
The SEC said the new rules aim to promote innovation while protecting investors and maintaining market integrity.
Meanwhile, think tank Infrawatch said the SEC’s StratBox, a new regulatory sandbox for licensed crypto firms, marks a step forward in cryptocurrency regulation.
Infrawatch, however, warned that this progress should be matched with stronger efforts to close enforcement gaps that enable unregistered platforms to facilitate fraud and abuse.
Terry Ridon, Infrawatch convenor, said the StratBox, which allows licensed Crypto Asset Service Providers (CASPs) to test new products and services under regulatory supervision, is a timely move to promote innovation in the country’s digital asset ecosystem.
“The sandbox model supports innovation but only for regulated and licensed entities. The use of crypto for illicit activities remains rampant particularly on unregulated and unlicensed firms, and the government should crackdown on firms operating in the Philippine market,” he said.
Under the new CASP Rules, a crypto-asset is defined as “a cryptographically secured digital representation of value or of a right that relies on a cryptographically secured distributed ledger or a similar technology to validate and secure transactions that can be transferred, stored, or traded electronically.”
The rules cover all entities involved in crypto services, including platforms that trade or market crypto-assets. These entities must register with the SEC and get proper licenses before operating.
Under the rules, crypto-assets and crypto-asset securities should not be sold or offered for sale or distribution in the country without a disclosure document or registration statement approved by the SEC.
Anyone promoting or selling crypto-assets without registration and proper licensing will be penalized, the SEC said.
For initial coin offerings, the SEC requires crypto-asset issuers to submit disclosure documents at least 30 days before marketing or offering. These documents should include information about the issuer, the asset’s features and risks, and the technology behind it.
CASPs should be registered corporations with at least P100 million in paid-up capital. They should have a physical office and pay a P50,000 filing fee to the SEC. They are also subject to annual supervision fees.
CASPs are required to report trading activity and user numbers to the SEC. They must also separate customer assets from company assets and follow data security rules.
The SEC said it may suspend or revoke a CASP’s registration if it fails to follow the rules or stops operating.
“If the SEC seeks strict compliance from licensed cryptocurrency exchanges, it should undertake stronger measures to crackdown on unlicensed exchanges operating in the Philippines, particularly through advisories warning the public against investing in these firms,” Ridon said.
Unlicensed platforms, he said, are often used to facilitate online scams, money laundering, and other illicit activities—many of which have already victimized Filipino users.
Ridon urged the SEC to work more closely with the National Telecommunications Commission to implement access restrictions on illegal platforms—similar to the agency’s earlier move to block Binance from operating in the country without proper registration.
“Compliant players are subject to strict regulatory requirements, while unlicensed entities often operate with fewer restrictions, creating a distorted environment where non-compliance appears more profitable,” Ridon said.
“This sends the wrong signal to the market and undermines confidence in the regulatory framework,” he said.
Ridon said any push to develop the digital asset sector should be grounded in a strong system of transparency, accountability and law enforcement.
“An emerging crypto environment should be regulated by the government to protect the public interest and investor funds while allowing innovation to thrive. This means crypto entities working with the government through a regulatory framework which gives importance to transparency and accountability while allowing entities to create new products and services to fill various gaps in the market,” Ridon said.
