The Philippines’ Securities and Exchange Commission (SEC) has formally issued its rules governing crypto asset service providers (CASPs), requiring entities offering such services to register and obtain a license before operating in the country. The move follows a surge in digital asset activity and a growing number of fraud cases involving unregistered platforms.
“The rules were issued to support local players and go after those unregistered ones,” Atty. Paolo Ong, Assistant Director at the SEC, said during a forum at Philippine Blockchain Week 2025. “We believe that the rules will give more teeth to our enforcement team, and they can be more assertive in going after unregistered platforms that are operating in the Philippines.”
Under the new guidelines issued via a Memorandum Circular dated May 30, all CASPs must register as a stock corporation in the Philippines with a paid-up capital of at least PHP100 million ($1.8 million), excluding digital assets. They are also required to submit a business plan, a risk disclosure matrix, and other documentation to secure approval.
Atty. Mark Gorriceta, Managing Partner of Gorriceta Africa Cauton & Saavedra (left) and Atty. Paolo Ong, Assistant Director of PhilFintech Innovation Office of the Securities and Exchange Commission (right) during the forum at the Philippine Blockchain Week 2025 held at the SMX Convention Center in Pasay City, Philippines.
Focus on fund segregation and investor protection
Ong explained that besides corporate registration and capital requirements, applicants must also ensure a clear separation of customer and company funds, an issue surfacing in several global digital asset exchange collapses.
“The CASP guidelines emphasize segregation of customer funds from exchange funds,” Ong said. “It’s because we see that learning from [the] collapse of other exchanges is really a key measure to protect investors [and] funds.”
He added that platforms must ensure Filipino users understand the risks involved with owning crypto assets. “We’d like Filipinos to access these products, but we require [them] to make them knowledgeable of the risks involved before they can engage with the platform.”
Marketing restrictions and guidelines for educators, influencers
One major provision addresses how digital asset products are marketed and promoted, especially online. According to Ong, anyone marketing or inducing the purchase of digital assets must be registered as a corporation and hold the necessary SEC license, with limited exceptions for third-party providers.
“The standard for us for marketing crypto assets in the Philippines would be simply a Philippine registration of a corporation—basic doing business, a primary license from the SEC,” Ong said. “You don’t need a CASP license for that, just a primary license.”
As for content creators and educators, Ong said intent and transparency are key.
“We don’t prohibit compensation for educational efforts, but we always look at good faith. If you’re educating and not pushing a specific investment or platform, it’s generally acceptable,” Ong said, adding that educators who promote specific products or platforms, especially those that are scams, could face enforcement actions.
“The enforcement team would really look at so-called educators that are pushing their audience into a specific platform,” Ong warned.
No current license for crypto financial advisors, but sandbox is open
Asked whether individuals offering trading or investment advice in digital assets should register as financial advisors, Ong clarified that the SEC currently has no licensing scheme for financial advisors, including in traditional markets.
He said such individuals may want to enter the SEC’s regulatory sandbox.
“We don’t have it right now, but they might want to consider entering the sandbox if they would want to engage in that activity,” Ong said.
Enforcement and industry collaboration moving forward
The SEC stated that the new CASP rules are designed to evolve in tandem with the industry. Ong encouraged stakeholders to provide feedback as the regulations are implemented.
“We believe that the rules will not have a final form yet. It should continue to develop,” he said. “We are always open to feedback, whether through forums like this or via email to the FinTech unit of the SEC.”
As for enforcement, penalties include fines of PHP50,000 ($885) for a first offense, PHP100,000 ($1,770) for a second offense, and PHP200,000 ($3,540) for a third offense, along with possible license revocation. Unused CASP licenses may be canceled after 12 months, and late filing of reports may result in fines starting at PHP10,000 ($177) plus PHP500 ($8.85) for each day of delay.
Ultimately, the SEC states that its goal is to protect Filipino investors while promoting compliant innovation.
“Risk-based supervision is what we aim for,” Ong said. “The biggest risks we see are from unregistered foreign platforms and scammers. These rules are meant to guard against that.”
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