Introduction
The Philippines has emerged as one of Asia’s most progressive countries when it comes to digital assets and blockchain adoption. With a growing interest in cryptocurrency exchanges, digital wallets, and blockchain-based financial services, businesses are eager to establish operations in this jurisdiction. However, before entering this highly regulated market, it is essential to understand the licensing framework that governs cryptocurrency activities.
Abanto Law provides specialized legal services in setting up cryptocurrency businesses in the Philippines, including guidance on licensing, compliance, and regulatory approvals.
This article explores the legal framework, licensing process, compliance obligations, and advantages of establishing a cryptocurrency business in the Philippines.
Regulatory Framework for Cryptocurrency in the Philippines
Cryptocurrencies in the Philippines are primarily regulated by the following authorities:
- Bangko Sentral ng Pilipinas (BSP) – regulates Virtual Asset Service Providers (VASPs), including crypto exchanges and wallets.
- Securities and Exchange Commission (SEC) – oversees token offerings, investment contracts, and securities-related blockchain projects.
- Cagayan Economic Zone Authority (CEZA) – issues licenses to offshore cryptocurrency and fintech businesses through its “Financial Technology Solutions and Offshore Virtual Currency Exchange” program.
These agencies ensure that crypto businesses comply with anti-money laundering (AML) laws, cybersecurity standards, and investor protection measures.
Types of Crypto Licenses in the Philippines
- BSP VASP License – Required for crypto exchanges, custodial wallets, and similar platforms operating locally.
- CEZA Offshore License – Allows foreign operators to legally conduct crypto trading and fintech-related businesses outside Philippine jurisdiction but within CEZA.
- SEC Registration – For blockchain projects, token sales, and securities-related crypto activities.
Why Choose the Philippines for Your Crypto Business?
- Progressive regulatory environment – Clear rules for exchanges and wallets.
- Strategic location in Asia – Access to a tech-savvy market.
- Government openness – Authorities encourage fintech innovation.
- Growing crypto adoption – Over 11 million Filipinos own crypto assets.
Licensing Process for Cryptocurrency Businesses
1. Determine Business Structure
- Corporation or partnership under Philippine law
- Foreign companies may establish subsidiaries or branches
2. Secure Necessary Registrations
- SEC registration
- Bureau of Internal Revenue (BIR) registration
- Local government permits
3. Apply for a VASP License (BSP)
- Submit business plan, compliance manual, AML/CFT framework
- Meet capital requirements (₱50 million minimum paid-up capital)
- Demonstrate strong cybersecurity and risk management
4. Offshore CEZA License (Optional)
- Ideal for foreign operators targeting non-Philippine residents
- Requires higher fees but offers flexibility
Compliance Obligations
- AML/CTF Compliance – Strict customer due diligence (KYC) and suspicious transaction reporting.
- Cybersecurity – Robust IT infrastructure to protect digital wallets and customer funds.
- Consumer Protection – Clear terms of service, dispute resolution mechanisms.
- Tax Compliance – Proper tax filings with the BIR.
Challenges of Crypto Licensing in the Philippines
- High capital requirements
- Strict reporting obligations
- Evolving regulations
- Long approval timelines
How Abanto Law Assists Crypto Businesses
Abanto Law provides:
- Feasibility assessment of licensing options
- Assistance with SEC, BSP, and CEZA applications
- Drafting compliance manuals and internal policies
- Structuring tax-efficient corporate setups
- Ongoing legal advisory for regulatory updates
Conclusion
The Philippines is a promising hub for cryptocurrency businesses, but compliance with the regulatory framework is crucial for long-term success. With the right guidance, entrepreneurs can navigate the complex licensing process and establish a legally compliant, profitable crypto business.
👉 Abanto Law is ready to assist you in securing your cryptocurrency license in the Philippines. Contact us today for a consultation.
