Crypto in Philippines

The Philippines maintains a legal but tightly regulated cryptocurrency market. The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 944 in February 2017, establishing licensing requirements for virtual currency exchanges (VCEs). In January 2021, BSP Circular No. 1108 expanded the framework to include virtual asset service providers (VASPs), mandating registration, capital requirements, and AML/CFT compliance. As of 2025, the BSP has licensed 18 crypto exchanges, including major players like Coins.ph and PDAX. The Securities and Exchange Commission (SEC) Philippines regulates crypto assets that qualify as securities under the Securities Regulation Code (Republic Act No. 8799). In December 2022, the SEC issued Memorandum Circular No. 14, requiring VASPs to register before offering securities tokens. The BSP also oversees the pilot of the Digital Peso (Project CBDCPh), launched in 2023, which aims to enhance payment systems. The regulatory approach is collaborative, with the BSP and SEC issuing joint advisories to clarify jurisdictional boundaries. However, enforcement remains challenging due to the decentralized nature of crypto and limited resources.

The Philippines taxes cryptocurrency gains through the Bureau of Internal Revenue (BIR). Under Revenue Regulations No. 8-2021, gains from the sale or exchange of virtual assets are subject to a 15% capital gains tax if the asset is held as a capital asset. For individuals, this tax applies to net gains exceeding PHP 100,000 (approximately $1,800) annually. If the crypto is held as inventory or for business purposes, gains are taxed as ordinary income at progressive rates up to 35%. Additionally, the BIR requires VASPs to report transactions and withhold taxes. In 2023, the BIR clarified that crypto-to-crypto exchanges are taxable events, and losses can only offset gains within the same category. Tax reporting is mandatory, with VASPs required to submit annual information returns. Non-compliance can result in penalties of up to 50% of the tax due plus interest. The tax framework is still evolving, with proposals to simplify reporting for small transactions.

The Philippines has emerged as a crypto adoption leader, with over 4 million users as of 2025, representing about 3.5% of the population. Remittances drive significant usage: the BSP reports that crypto-facilitated remittances reached $1.2 billion in 2024, up 30% year-over-year, primarily through corridors from the UAE, Saudi Arabia, and the US. Retail and peer-to-peer (P2P) trading volumes on platforms like Paxful and Binance P2P surged, with monthly P2P volumes exceeding $100 million in 2024. Institutional activity is growing: PDAX, a BSP-licensed exchange, partnered with the Philippine Stock Exchange in 2023 to offer tokenized securities. The play-to-earn game Axie Infinity, popular in the Philippines, peaked in 2021 with over 1 million Filipino users, though activity has since declined. Crypto adoption is also fueled by a young, tech-savvy population and high mobile penetration (over 70%). The BSP's Digital Peso pilot, involving 10 financial institutions, aims to complement crypto by providing a stable digital payment option.