On June 12, 2025, the Philippines became the first country in Southeast Asia to implement a comprehensive regulatory framework for crypto assets.
Introduction of New Regulatory Rules
The Philippines Securities and Exchange Commission (SEC) officially introduced new rules known as the 'Crypto Asset Service Provider Rules.' These measures aim to organize the cryptocurrency industry and protect investors by setting clear market boundaries.
Key Features of the New Rules
All Crypto Asset Service Providers (CASPs) must register as local companies, possess a capital of at least 100 million pesos (approximately $1.8 million), and obtain dual licenses from both the SEC and the Bangko Sentral ng Pilipinas. Violations of the rules may result in severe fines and criminal liability.
Market Impact and Outlook
While the new regulations may lead to increased operational costs for smaller service providers and expedite consolidation, they also pave the way for international exchanges and minimize fraud risks. These measures are expected to attract substantial foreign investments and accelerate blockchain technology adoption in the country.
With the new regulations, the Philippines not only sets a standard in Southeast Asia but also demonstrates how stringent regulation can transform the cryptocurrency market while ensuring investor safety.
