Philippines Bans Privacy Coins in New Crypto Regulatory Framework
The Bangko Sentral ng Pilipinas (BSP) has introduced new guidelines for Virtual Asset Service Providers (VASPs) that mandate strict vetting of digital assets before listing. The central bank’s move is aimed at enhancing customer protection and financial stability. Key to these rules is a ban on privacy coins, such as Monero and Zcash, which are now prohibited from being listed or supported by local platforms. Deputy Governor Lyn Javier signed the memorandum outlining these requirements.
The guidelines emphasize due diligence and ongoing monitoring of listed assets. Platforms must establish thresholds for suspending or delisting tokens in cases of lost liquidity, issuer insolvency, security breaches, or misleading disclosures. A token linked to fraudulent activities can also be removed. Alden Yburan, head of crypto at GCash, described the standards as overdue, asserting that stronger requirements would lead to better products for users.
Yburan expressed mixed views on the privacy coin ban, acknowledging their legitimate uses, such as transactions without surveillance. He argued that the Philippines, as a remittance-heavy country, should balance financial trust with the foundational value of anonymity in crypto. The new rules follow earlier regulatory actions, including a June 2025 SEC directive requiring local registration, higher capital reserves, and data storage within the country. By August 2025, the SEC had restricted access to several offshore platforms, including OKX, Bybit, Kraken, and KuCoin.
The Philippines remains a significant player in crypto adoption, ranking ninth on Chainalysis’s 2025 Global Crypto Adoption Index. Meanwhile, lawmakers are considering Senate Bill 1330, which proposes placing the national budget on-chain in response to public spending controversies.