Philippines Tightens Crypto Rules with New VASP Guidelines

The Philippines continues to tighten its grip on cryptocurrency markets with new guidelines from the Bangko Sentral ng Pilipinas (BSP) requiring all licensed Virtual Asset Service Providers (VASPs) to implement rigorous due diligence and accreditation processes before offering digital assets to customers.

The BSP memorandum signed by Deputy Governor Lyn Javier aims to promote financial stability and protect customer welfare by ensuring VA services are provided in a safe, sound, and consumer-centric manner.

One key aspect of the new guidelines is the ban on anonymity-enhancing cryptocurrencies, commonly referred to as privacy coins. Assets like Monero (XMR), Zcash (ZEC), and Dash will no longer be allowed on compliant local exchanges due to their pseudonymous nature.

Alden Yburan, head of crypto at GCash, expressed mixed views on the ban, acknowledging that assets like Monero and Zcash 'exist for legitimate reasons' but also noting the importance of preventing anonymity-enhancing assets from flowing freely in a remittance-heavy country.