BSP Pushes for Strict Crypto Oversight Amid Traceability Concerns
The Bangko Sentral ng Pilipinas (BSP) is advocating for strict oversight of cryptocurrency transactions, citing risks associated with unregulated exchanges. BSP Governor Eli Remolona Jr. emphasized the need for tight regulation during an interview with Bankero Unfiltered, particularly as global crypto exchange Binance seeks to reenter the Philippine market.
Remolona stressed that the BSP wants cryptocurrency transactions handled through regulated virtual asset service providers (VASPs). These providers are subject to know-your-customer (KYC) rules, which help verify client identities and trace suspicious transactions. He warned that unregulated crypto transfers can be dangerous because they often lack traceability, making it difficult for authorities to identify the parties involved.
The BSP has maintained a moratorium on issuing new VASP licenses since September 2025, citing concerns over consumer protection and rising cybercrime risks. The central bank is developing a broader regulatory framework for the crypto industry, while also reassessing the moratorium based on domestic and global developments.
Binance, which was blocked by the Securities and Exchange Commission (SEC) in 2024 for operating without proper registration, announced in May 2026 a partnership with Philippine-registered BlockShoals Technologies Inc. under the SEC’s StratBox framework. This regulatory sandbox allows companies to test financial products in a controlled setting. Despite these developments, the BSP remains focused on ensuring traceability and customer identification in virtual asset transactions.