New BSP rules put crypto tokens under deeper scrutiny in Philippines

The Bangko Sentral ng Pilipinas (BSP) has introduced stricter requirements for virtual asset service providers (VASPs), requiring them to apply deeper screening, monitoring, and delisting procedures for cryptocurrencies offered to customers. 

Summary

• BSP requires crypto exchanges to conduct deeper reviews before listing tokens and stablecoins locally.
• New rules mandate continuous monitoring and clear delisting triggers for higher-risk virtual assets.
• Privacy-focused cryptocurrencies remain prohibited as regulators strengthen consumer protection and compliance safeguards.

The move comes as regulators continue to strengthen oversight of the country’s digital asset market.

The new guidance requires VASPs to establish a “robust due diligence and accreditation process” before listing virtual assets on their platforms, according to a memorandum issued by BSP Deputy Governor Lyn Javier.

BSP sets broader standards for token listings

Under the memorandum, VASPs must evaluate virtual assets across six areas: issuer background, market maturity, use cases, transparency and security, redemption and liquidity, and legal compliance. The BSP said exchanges should gather sufficient information to assess the quality and risks of assets 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 examining possible conflicts of interest involving issuers, regulators, government officials, or related entities.

For market maturity, VASPs may assess factors such as market capitalization, trading volume, years in operation, exchange support, and the number of on-chain holders. Regulators said these indicators can help determine whether an asset has established market activity and sufficient liquidity.

Stablecoins and reserve backing receive closer attention

The BSP placed additional focus on asset-backed and fiat-backed virtual assets. Exchanges may be required to examine how tokens are issued, redeemed, minted, and burned, as well as the mechanisms used to maintain price stability.

The memorandum also directs VASPs to review reserve composition and verify whether backing assets can support 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 further said project whitepapers should be readily accessible to users. These documents should include information on tokenomics, supported blockchains, project goals, purchasing methods, and risks related to money laundering, cybersecurity, governance, liquidity, and consumer protection.

Continuous monitoring and delisting requirements

Beyond initial listings, the BSP now requires VASPs to continuously monitor listed assets and establish thresholds that could trigger suspension or delisting. Exchanges must track whether assets continue to meet the standards used during the approval process.

Tokens may be suspended or removed because of adverse market developments, cybersecurity incidents, legal violations, misleading disclosures, consumer protection concerns, market abuse, or unusual price movements. The BSP said exchanges should act immediately when serious risks emerge.

The central bank also reaffirmed that anonymity-enhancing cryptocurrencies, commonly known as privacy coins, remain prohibited from being listed or supported by licensed VASPs.

New rules arrive amid broader crypto regulation efforts

The latest measures arrive as Philippine regulators continue refining the framework governing digital asset businesses. The BSP’s action follows ongoing efforts by the country’s regulators to ensure crypto service providers operate under clearer standards and stronger compliance requirements.

The development also comes shortly after Binance sought a regulated path back into the Philippines through a partnership with BlockShoals Technologies under the Philippine Securities and Exchange Commission’s StratBox sandbox program. As previously reported by crypto.news, Binance said the arrangement would allow it to test services within a supervised regulatory environment.

However, recent reports indicated that neither Binance nor BlockShoals currently holds a BSP-issued VASP license, with the central bank stating that participation in the SEC sandbox does not replace licensing requirements for virtual asset services.

Binance has been pursuing a regulated return to the Philippine market through the SEC’s sandbox framework after facing licensing-related restrictions in the country.