BSP Confirms Crypto-to-Crypto Trading Falls Under SEC Jurisdiction

The Bangko Sentral ng Pilipinas (BSP) has clarified its stance on crypto-to-crypto trading, stating that it 'fits naturally' under the perimeter of the Securities and Exchange Commission (SEC). This comes as Binance returns to the Philippines through an SEC Strategic Sandbox arrangement with BlockShoals Technologies.

The BSP confirmed that prior to the SEC's issuance of Memorandum Circular Nos. 4 and 5 of 2025, it treated crypto-to-crypto exchanges under the same framework used for money-changing and foreign-exchange dealing. However, following the SEC's establishment of order-book trading and intermediation as regulated activities, the BSP noted that speculative crypto-to-crypto exchange through a trading venue 'fits naturally under the SEC's perimeter'. The central bank plans to release proposed amendments to Circular No. 1108 for public comment to reflect these regulatory updates.

The BSP also clarified its position on cross-border routing and policy conditions, stating that routing transaction flows to a foreign platform can keep the chain intact provided the offshore counterparty is duly authorized and licensed in its home country. The central bank noted that this approach aligns with Financial Action Task Force (FATF) guidance, but requires domestic institutions to conduct rigorous counterparty due diligence reviews.