Golden Finance reports that the Philippines has recently introduced the country’s most comprehensive digital asset regulatory framework to date, aiming to regulate the operations of crypto asset service providers (CASPs). The new regulations clearly stipulate that crypto asset service providers operating in the Philippines must obtain a license and strictly comply with a series of information disclosure requirements.
According to the new regulations, crypto asset service providers operating in the Philippines need to meet multiple conditions. First, it must be registered as a local company and meet the minimum paid-in capital requirement of ₱1 million (US $1.8 million). This capital requirement is designed to ensure that the relevant enterprises have sufficient financial strength to deal with potential risks and protect the rights and interests of investors. At the same time, enterprises also need to set up physical office Spaces to effectively isolate customer assets from company assets, prevent risks caused by asset confusion, and regularly submit operation reports to the regulatory authorities so that the regulatory authorities can promptly grasp the operation status of the enterprises and maintain market order.
The new regulation was released on May 30 in accordance with Memorandum No. 5 circular of the Philippine Securities and Exchange Commission (SEC) and officially came into effect on Thursday. The introduction of this comprehensive regulatory framework reflects the Philippine government’s emphasis on the cryptocurrency industry, aiming to enhance regulation, prevent financial risks, and promote the healthy and orderly development of the cryptocurrency market. Previously, the Philippines had relatively loose regulations on cryptocurrencies, and there were certain irregularities in the market. For instance, some cryptocurrency investment scams occurred from time to time, making it difficult to effectively protect the rights and interests of investors. The implementation of this new regulation will prompt crypto asset service providers to enhance their compliance awareness, standardize their business operations, and create a more stable and transparent development environment for the Philippine cryptocurrency market.
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