Philippines Bans Privacy Coins, Tightens Crypto Listing Rules

The Bangko Sentral ng Pilipinas (BSP) has cracked down on cryptocurrency trading in the Philippines, banning virtual asset service providers from listing 'privacy coins' and tightening listing rules for all cryptocurrencies.

The BSP defines anonymity-enhancing virtual assets as tokens designed to obscure transaction details. VASPs operating in the country must now build a robust due diligence process before adding any coin or token to their platforms.

The new guidelines require VASPs to assess each asset against six pillars, including issuer checks and market maturity. Issuer checks involve reviewing incorporation papers, audited financials, ownership structure, ultimate beneficial owners, and fitness assessments of the people behind a project, as well as any conflicts of interest.

VASPs must also examine the full lifecycle of stablecoins and fiat-backed tokens, from minting and issuance to burning, and verify the composition of their reserves. Tokens are subject to continuous monitoring after listing, with VASPs setting thresholds for deviations from their standards that act as triggers for delisting.