Philippines’ BSP bans licensed crypto exchanges from supporting privacy coins

The Bangko Sentral ng Pilipinas (BSP) has told licensed crypto exchanges and brokers to stop supporting privacy coins, bringing local virtual asset rules closer to FATF (Financial Action Task Force) standards. For PSPs and crypto businesses operating in high-risk flows, the practical point is simple: if a token obscures sender, receiver, or transaction details, it is now off-limits for licensed VASPs (virtual asset service providers) in the Philippines.

1. The BSP’s new requirements apply to all licensed VASPs operating in the country. The ban covers listing, trading, deposits, and withdrawals of cryptocurrencies that hide information about senders, recipients, or transaction parameters.
2. Users are still allowed to hold such assets through personal non-custodial wallets. In other words, the restriction is aimed at regulated on-ramp and off-ramp infrastructure, not at private ownership itself.
3. The regulator also tightened token-listing rules more broadly. Before adding a token, crypto platforms must assess the issuer’s reputation, how the asset is used, security level, liquidity, and compliance with applicable law.
4. Stablecoins got their own checklist. Exchanges and brokers now have to review the full operating model, including issuance mechanics, reserve backing, and redemption procedures.
5. BSP also requires regular risk reviews for tokens already available for trading. If liquidity drops sharply, the issuer’s business changes materially, or other elevated-risk signals appear, platforms must reassess the token’s status and, if needed, restrict support.

The Philippines has already been tightening the screws on unlicensed crypto platforms. After an order from the National Telecommunications Commission (NTC), local internet providers restricted access to several foreign exchanges, including Coinbase and Gemini.