Asher Draycott Jan
30

Crypto Licensing Requirements in Philippines by SEC: What You Need to Know in 2026

Before July 5, 2025, you could sign up for any crypto exchange-Binance, OKX, KuCoin-and trade from the Philippines with no questions asked. That’s not true anymore. The Securities and Exchange Commission (SEC) of the Philippines shut the door on unregulated platforms and launched one of the strictest crypto licensing frameworks in Southeast Asia. If you’re trading, investing, or running a crypto service in the Philippines, you need to understand what’s changed-and what’s at stake.

Who Needs a License?

The SEC’s new rules, outlined in Memorandum Circular No. 04 and No. 05 (Series of 2025), define any company offering crypto services to Filipinos as a Crypto Asset Service Provider (CASP). That includes exchanges, wallet providers, staking platforms, and even crypto ATMs. It doesn’t matter if the company is based in Singapore, the U.S., or Estonia. If it’s serving Filipino users, it must register with the SEC.

What Are the Licensing Requirements?

Getting licensed isn’t a formality. It’s a major undertaking. Here’s what the SEC demands:

Minimum paid-up capital of PHP 100 million (about $1.8 million USD). This money must be in Philippine pesos or fiat currency, not crypto. It’s meant to cover losses if things go wrong.
Physical office in the Philippines. You can’t just have a PO box. You need a real office with staff on the ground. This isn’t about bureaucracy-it’s about accountability.
Full AML and KYC systems. Every user must be verified with government-issued ID. All transactions are monitored. Suspicious activity must be reported to both the SEC and the Anti-Money Laundering Council within 24 hours.
Customer fund segregation. Your users’ crypto and cash can’t touch your company’s operating funds. If your exchange collapses, their money stays safe.
30-day pre-disclosure rule. Before you market any crypto asset, you must file a disclosure document with the SEC and publish it publicly on your website and social media. You can’t promise future price gains. You can’t say “double your money.” You can only state facts.
Monthly financial reporting. You must submit detailed reports on trading volume, user growth, fund flows, and risk exposure every single month.

What Happened to the Big Exchanges?

The SEC didn’t just make rules-they enforced them. On August 1, 2025, they publicly named ten major global exchanges still operating without licenses: OKX, Bybit, KuCoin, Kraken, Gate.io, MEXC, Bitget, Binance, Huobi, and CoinEx. These platforms were told: stop serving Filipinos or face penalties.

Binance got hit first in 2024. The SEC gave users 90 days to withdraw their funds, then blocked access to the site. The same thing happened to the others in 2025. Today, if you try to log into KuCoin from a Philippine IP address, you’ll see a warning: “This service is not authorized by the SEC.”

Who’s Compliant? Who’s Still Trying to Get In?

Some exchanges moved fast. Youholder, Bitget, Cex.io, and Bigone submitted full applications and are now operating legally. They’ve hired local compliance teams, opened offices in Makati and Quezon City, and updated their apps to block users from unlicensed regions.

But many smaller platforms can’t afford the PHP 100 million capital requirement. A startup in Manila trying to launch a crypto wallet? They’d need investors willing to put up nearly $2 million in cash before they even take their first user. That’s why the SEC’s rules are seen as favoring big players. Some analysts call it “regulatory capture.” Others say it’s necessary to protect everyday Filipinos from shady operators.

A young Filipino investor reviewing a secure SEC crypto registry, with animated crypto icons and a protective fox spirit nearby.

Penalties for Breaking the Rules

Violating the CASP rules isn’t a slap on the wrist. The SEC can fine you:

PHP 50,000 to PHP 10 million per violation
PHP 10,000 per day for ongoing violations

That’s not theoretical. In November 2025, a local crypto influencer who promoted an unlicensed staking platform was fined PHP 2.3 million. The platform’s owner was barred from operating in the country for five years. The SEC doesn’t just go after companies-they go after people.

What About Regular Users?

The SEC isn’t trying to stop you from owning Bitcoin or Ethereum. They’re trying to stop you from losing your money to a scam or a bankrupt exchange. You can still trade crypto. You just can’t do it on an unlicensed platform.

If you’re a retail investor, here’s what to do:

Only use exchanges listed on the SEC’s official CASP registry (updated monthly on sec.gov.ph)
Never deposit funds into a platform that doesn’t show its SEC license number
Read the disclosure documents before buying any new token
Report suspicious platforms to the SEC’s PhiliFintech Innovation Office

Market Impact: Is Regulation Killing Growth?

Some feared the crackdown would kill the market. It didn’t. Crypto adoption in the Philippines is still growing-projected to reach 10.86% of the population by 2026, with over 12.7 million users. Crypto revenue hit ₱1.1 billion in 2025, up 4.59% from the year before.

Why? Because people still want crypto. They just want to do it safely. The licensed exchanges saw a 37% increase in new user sign-ups after the crackdown, as trust improved. Users now know that if their money is on a licensed platform, it’s protected by law.

An ornate gate of blockchain and flowers guarded by a wise figure, with compliant exchanges blooming behind it and unlicensed ones fading away.

What’s Next?

The SEC says this is just the beginning. They’re already working on rules for crypto-backed loans, decentralized finance (DeFi) protocols, and non-fungible tokens (NFTs). They’re also exploring partnerships with the Bangko Sentral ng Pilipinas (BSP) to create a unified fintech oversight body.

For now, the message is clear: if you want to operate in the Philippine crypto market, you play by the SEC’s rules. No exceptions. No loopholes. No more offshore shell companies hiding behind domain names.

Frequently Asked Questions

Can I still trade crypto in the Philippines if I use an unlicensed exchange?

Technically, yes-but it’s risky. The SEC doesn’t ban individuals from trading. But if you use an unlicensed exchange, your funds aren’t protected. If the platform gets hacked or shuts down, you have no legal recourse. You also risk being flagged for money laundering if your transactions are linked to an unregistered entity.

Do I need a license if I’m just buying Bitcoin for personal use?

No. Individual investors don’t need a license. The rules only apply to businesses offering crypto services-exchanges, wallets, staking platforms, etc. If you’re buying Bitcoin, Ethereum, or other assets to hold or trade for yourself, you’re not regulated. Just make sure you’re using a licensed platform to do it.

How do I check if a crypto exchange is licensed by the SEC?

Go to the official SEC website at sec.gov.ph and look for the “CASP Registry” under the PhiliFintech Innovation Office section. The list is updated monthly and includes the license number, company name, physical address, and date of registration. If you can’t find it there, assume it’s not licensed.

What happens if I’m a Filipino living abroad and use a Philippine-licensed exchange?

You’re fine. The rules apply to where the service is offered, not where the user lives. If you’re a Filipino in Dubai or London and use a licensed Philippine exchange, your account is protected under the same rules as if you were in Manila. But if you use an unlicensed global exchange, you’re still exposed to the same risks.

Are stablecoins regulated the same way as Bitcoin?

Yes. All crypto-assets-whether Bitcoin, Ethereum, or USDT-are treated the same under the CASP rules. Any platform offering trading, custody, or staking of stablecoins must be licensed. The SEC has explicitly stated that stablecoins are not exempt just because they’re pegged to fiat. They’re still crypto-assets under Philippine law.

Can a foreign company apply for a CASP license without a local partner?

No. All CASP applicants must be registered as domestic corporations under Philippine law. That means you must incorporate a local entity-typically a Philippine corporation-with at least 60% Filipino ownership. Foreign companies can own up to 40%, but they cannot apply directly. This rule is designed to ensure local accountability and oversight.

Is the SEC planning to ban crypto altogether?

No. The SEC has repeatedly stated that it does not oppose cryptocurrency. Its goal is to bring order to a chaotic market. They want to protect Filipinos from fraud, scams, and sudden platform failures. They’re not trying to kill innovation-they’re trying to make it safe.

What Should You Do Now?

If you’re a trader: switch to a licensed exchange. Check the SEC registry. Don’t assume a platform is safe because it’s popular. If you’re a developer or entrepreneur: if you want to build a crypto service in the Philippines, start with legal compliance-not code. Talk to a Philippine corporate lawyer. Budget for the PHP 100 million capital requirement. Build your office before you launch your app.

The Philippines didn’t become the first country in Southeast Asia to fully regulate crypto by accident. It did it because its people lost too much money. Now, the system is built to make sure that doesn’t happen again. You don’t have to like the rules. But if you want to play in this market, you have to follow them.

Asher Draycott

I'm a blockchain analyst and markets researcher who bridges crypto and equities. I advise startups and funds on token economics, exchange listings, and portfolio strategy, and I publish deep dives on coins, exchanges, and airdrop strategies. My goal is to translate complex on-chain signals into actionable insights for traders and long-term investors.