SEC Tightens Rules on Crypto Asset Service Providers in the Philippines
- Yasser Aureada
- 1 day ago
- 2 min read
On July 5, 2025, the Securities and Exchange Commission (SEC) implemented the Rules on Crypto Asset Service Providers (CASP Rules), creating a new regulatory landscape for crypto businesses in the Philippines. In an advisory dated August 14, 2025, the SEC clarified that while cryptocurrency trading and investment remain legal, all platforms must first secure proper registration and licensing before operating in the country.
What the CASP Rules Require
Mandatory Registration – Both local and foreign crypto platforms serving Filipinos must register with the SEC.
Capital Requirement – A minimum paid-up capital of ₱100 million is required, alongside a registered Philippine corporation and office.
Investor Protection – CASPs must segregate customer funds, disclose investment risks, and comply with anti-money laundering safeguards.
Marketing Restrictions – Only registered entities may promote crypto services; unlicensed influencers or platforms risk penalties.
Failure to comply may lead to hefty fines, website blocking, or even criminal liability, with penalties of up to ₱2 million and 5 years’ imprisonment.
SEC Enforcement Actions
The SEC has already issued advisories against unregistered global exchanges—including OKX, Bybit, KuCoin, Kraken, and others—and warned the public of risks such as fraud, market manipulation, and money laundering. The agency has also begun coordinating with internet providers to block access to unlicensed platforms.
How Your Business Should Respond
Assess your operations – Determine if your services fall under the definition of a CASP.
Register promptly – Prepare incorporation, capitalization, and compliance documents for SEC submission.
Align with other regulators – BSP’s VASP license covers AML, but SEC registration is separately required.
Review marketing activities – Avoid promotions until fully registered; ensure disclosures are complete and compliant.
Engage legal counsel – Early legal guidance can help streamline SEC registration and reduce enforcement risk.
Why Compliance Matters
The SEC’s message is clear: crypto in the Philippines is welcome, but only under a regulated, transparent system. For investors, this means safer markets. For businesses, it means embracing compliance to gain trust and legitimacy.
Need legal assistance with CASP registration or compliance?Our firm provides comprehensive guidance on SEC rules, BSP requirements, and fintech regulations to help crypto businesses operate lawfully and competitively in the Philippines.
Contact us today to schedule a consultation.
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