Summary
- The Philippines ranks as one of the world’s highest in terms of crypto adoption.
- There has been a marked shift in recent years on the part of consumers and the authorities.
- This has seen a move from grassroots crypto use driven by gaming communities to broader financial integration.
- Alongside this, the authorities have become more proactive, seeking to make the Philippines an attractive financial centre, and improving consumer protection.
- For more coverage of crypto developments throughout the world, visit our Crypto in Action page.
Changing interest in crypto
Philippines ranks high in terms of adoption – 8th globally. Approximately 10% of the population use crypto, with 12.79 million forecast to be adopters by 2026.
Philippines was an early adopter, with play-to-gaming fuelling the early interest in crypto. During the pandemic, Filipino users accounted for 40% of the Axie Infinity game’s player base. These patterns have shifted. Remittance payments are important and wealth concentration is becoming a focus.
In terms of remittances, remittances stood at $38.34 billion in 2024, marking a 3% year-on-year rise. Cognisant of the role of crypto in remittance transfer, the authorities have helped facilitate this. In June 2024, Pays0, an electronic money issuer and payment systems operator under the central bank, announced a partnership with digital currency exchange, Coins.ph, to support the conversion between the fiat and digital currencies.
Filipinos also display an unusually high interest in cryptocurrency ownership. According to the Crypto Friendly Cities Index 2025, the Philippines ranks 20th in terms of wealth concentration, with crypto owners holding an average of $14,194.46. This is far below some countries in the region (the figure for Singapore, for example, is $85,536.63), but for an emerging economy is notably high.
This reflects at least three things:
- The government’s positive attitude to digital asset development
- A population that is increasingly technologically literate, a trend that the pandemic supported
- Remittance payments and the lack of a readily accessible traditional financial structure
A YouGov survey revealed that the sentiments most associated with this among Filipinos was that they regarded crypto as an “alternative to the traditional financial ecosystem” and/or the “future of money”.
Authorities’ attitude to crypto
President Ferdinand “Bongbong” Romualdez Marcos Jr is a supporter of digital innovation and under his presidency there has been a shift towards forward-thinking about digital assets.
He regards the country’s future as digital, and used his first State of the Nation address in 2022 to call for changes to the taxation system to “catch up with the rapid developments of the digital economy.” He said that taxing digital service providers would yield an initial PHP11.7 billion the following year if passed by Congress, supporting both the country’s GPD and narrowing the budget deficit to 3% of GDP by 2028.
Historically, the authorities have taken a cautious approach to crypto and its regulation. This is changing. The focus is on creating the conditions to make the Philippines an attractive financial centre operating in line with global norms, and improving consumer protection.
Underscoring its intent, the authorities announced the Crypto Valley of Asia (CVA) in the Cagayan Economic Zone Authority (CEZA) in 2018. Rules related to offshore virtual currency services and digital assets were issued the same year. CEZA operates as a separate customs area and is designed to support business activity. As part of this, it is reportedly the first economic zone in the region to regulate, license, and propagate offshore financial technology solutions for companies and offshore virtual currency exchanges.
Legislative changes
In lieu of comprehensive crypto-related legislation, two bodies – the Bangko Sentral ng Pilipinas (BSP, central bank) and the Securities and Exchange Commission (SEC) – have helped regulate and shape the country’s crypto sector. In 2021, the SEC launched its own fintech office, the PhiliFintech Innovation Office, which focuses on fintech usage regulation. Guidelines from these bodies coupled with the Financial Products and Services Consumer Protection Act have helped shape the regulation that is developing.
As a result, transparency has increased; notably, AML and KYC procedures have been put in place, with compliance strict.
As the market has grown, however, wider problems have emerged. Scams have been a particular feature of the Philippines crypto sphere, specifically giveaway scams and fake wallet phishing pages, as well as problems involving unregistered platforms.
The need to better protect Filipinos as well as provide credibility to a rapidly growing sector, has prompted moves to improve transparency, and latterly, legislation.
In 2024, the SEC drafted rules for Crypto Asset Services Providers (CASPs), the focus on which was to create a more stable framework for digital assets while also protecting consumers.
The proposed regulation – The SEC Guidelines on the Operations of Crypto-Assets Service Providers – released in 2025, call for feedback until April 2026 after which they are expected to be finalized.
In their current form – outlined in Memorandum Circular No. 4 and 5 – CASPs are expected to register with, and obtain a license from the SEC, maintain capital reserves of a minimum of PHP100m ($1.76m), and physically incorporate in the Philippines. In addition, CASPs must submit regular reports to the SEC and AML Council, and satisfy specific conditions such as ensuring a clear separation of customer and company funds. This distinction between customer and exchange funds follows the collapse of a number of exchanges and is designed to better protect consumers.
Reflecting the president’s early calls, crypto has, during 2025, fallen more squarely under the taxation regime. Capital gains tax has been increased to 15% on crypto – for selling crypto for the fiat currency or exchanging it for goods. Income from receiving crypto as payment, mining and staking is now falls under the income tax regime. Value added taxation (VAT) now applies to selling goods in exchange for crypto at a rate of 12%. Failure to file taxes on crypto now comes with penalties.
Another area that has been developed are restrictions for marketing and promoting digital assets and guidelines for educators and influencers. The authorities require those marketing or promoting the purchase of digital assets to be registered as a corporation and hold an SEC license. Those who fall under the umbrella of education or content creation are required to be transparent in their work, with the threat of action against individuals who promote specific platforms or products.
Timeline of crypto developments
2017
BSP introduced a regulatory framework for virtual currency exchanges and crypto-to-fiat service providers under Circular No. 944.
2018
The BSP introduced a Travel Rule for crypto, requiring sender and recipient information for crypto transactions over PHP50,000.
The country’s Crypto Valley is announced.
2019
The SEC began a public consultation on the Proposed Rules on Digital Asset Exchange, which sought to regulate the registration and operations of digital asset exchanges.
2021
The BSP issued Circular No. 1108, which expanded CASPs registration with AML/CFT compliance.
2022
The Financial Products and Services Consumer Protection Act came into force, providing consumer protection for crypto and other digital assets.
The BSP launched Project CBDCPh, a pilot project of a wholesale CBDC as part of wider moves to promote stability in the country’s payment system.
2023
The BSP and SEC implemented a travel rule, ensuring that reporting was required for cross-border crypto transfers above PHP50,000.
The SEC announced its partnership with the University of the Philippines Law Center (UPLC_ for research into virtual currency regulation.
The SEC announced it was delaying the release of a legal framework for crypto. Initially planned for late 2022, the regulator said that it wanted to study the reasons for the FTX collapse and issues of consumer protection.
The country’s central bank digital currency – the Philippine Peso Backed Stablecoin (PHPC) –was introduced under the BSP’s regulatory sandbox.
2024
The National Telecommunications Commission (NTC) blocked unlicensed crypto exchange sites as per the SEC’s more stringent regulations.
The draft CASP rules were released for consultation.
2025
The Philippines put in place a comprehensive cryptocurrency tax regime.
Outlook
The authorities have settled on a more proactive approach and have committed to CASP rules that they expect to continue to evolve as the sector develops. As part of this, they have called on the sector to provide ongoing feedback to help shape legislation.
The commitment to transparency and a strong digital asset sector is also evident, with the authorities moving to regulate in line with global norms and expectations. They are keen to promote market stability and safeguard the sector’s users. As a result, the crypto legislative regime can be expected to develop and become more detailed.
As a result, more stringent requirements can be expected (for example, raising the capital threshold deters undercapitalized firms), with only financially sound companies given access to the market. Greater detail in the tax framework is also likely, now that the basic frameworks are in place.
In the 2025-2026 period, the BSP is expected to test a retail CBDC under the Project Agila proof-of-concept initiative. Overall, the project is helping to create a blueprint for eventual implementation of CBDCs in the country.
