Crypto in Philippines

The Philippines maintains a legal but tightly regulated crypto environment. The Bangko Sentral ng Pilipinas (BSP) issued Circular No. 944 in February 2017, recognizing virtual currency exchanges (VCs) as remittance and transfer companies, subjecting them to AML/CFT rules under the Anti-Money Laundering Act (AMLA). In January 2021, BSP Circular No. 1108 expanded licensing to include crypto custody and exchange services, requiring minimum capital of PHP 50 million for VCEs. As of October 2025, the BSP has licensed 18 crypto exchanges, including major players like Coins.ph and PDAX. The Securities and Exchange Commission (SEC) regulates crypto securities under the Securities Regulation Code (SRC), issuing draft rules in 2023 that classify certain tokens as securities. The SEC also enforces the Financial Products and Services Consumer Protection Act (FCPA) of 2022. In 2024, the BSP imposed a three-year moratorium on new VCE licenses, effective September 2024, to assess risks. The Philippines does not recognize crypto as legal tender, but it is legal for investment and remittance.

The Bureau of Internal Revenue (BIR) issued Revenue Regulations No. 8-2021 in May 2021, clarifying that cryptocurrency gains are subject to a 15% capital gains tax (CGT) on net gains from sales or exchanges. This applies to individuals and corporations, with no de minimis threshold. However, if the crypto is used for payment for goods or services, it is treated as a barter transaction subject to income tax and value-added tax (VAT) if the taxpayer is VAT-registered. For miners and staking rewards, income is recognized at fair market value upon receipt and taxed as ordinary income. Reporting is required through BIR Form 1700 or 1701 for individuals, and 1702 for corporations. In 2024, the BIR announced plans to require crypto exchanges to report user transactions, but implementation has been delayed. The 15% CGT is among the highest in Southeast Asia, though enforcement remains limited due to lack of third-party reporting.

The Philippines has over 4 million crypto users, representing roughly 3.5% of the 115 million population. Adoption is driven by remittances: the BSP estimates that $2.5 billion in remittances flowed through crypto channels in 2024, up 30% from 2023, as overseas Filipino workers (OFWs) use platforms like Coins.ph and PDAX to send money home faster and cheaper. Retail and peer-to-peer (P2P) trading volumes on local exchanges reached $1.2 billion in 2024, according to BSP data. Institutional activity is growing: in 2024, the Philippine Stock Exchange (PSE) announced plans to launch a crypto trading platform, though no launch date is set. The play-to-earn game Axie Infinity, popular in the Philippines, peaked in 2021 but has declined. Crypto ATMs number over 200, mostly in Metro Manila. The BSP's Digital Peso pilot, Project CBDCPh, entered advanced testing in 2024 with 10 financial institutions, aiming to improve financial inclusion.