Crypto Licensing Requirements in Philippines by SEC: What You Need to Know in 2026

Before July 2025, anyone in the Philippines could use any crypto exchange - Binance, OKX, KuCoin, you name it. No licenses, no oversight, no consequences. That changed overnight. The Securities and Exchange Commission (SEC) of the Philippines dropped its most serious regulatory move yet: Crypto Asset Service Providers (CASPs) must now be licensed to operate here - or face being blocked, fined, and shut down. This isn’t a suggestion. It’s the law.

Who Needs a License?

If your business does anything involving crypto in the Philippines, you need a license. That includes exchanges that let people buy, sell, or trade digital assets. It includes wallets that hold crypto for users. It includes platforms that offer staking, lending, or yield farming. Even if you’re based in another country - say, Singapore or the U.S. - but you’re marketing to Filipinos or letting them trade on your platform, you’re subject to this rule. The SEC doesn’t care where you’re headquartered. If you serve Filipino users, you need to register.

The list of banned platforms isn’t small. On August 1, 2025, the SEC publicly named ten major exchanges operating illegally in the country: OKX, Bybit, KuCoin, Kraken, Gate.io, MEXC, Bitget, CoinEx, Binance, and Huobi. Binance was already blocked in 2024. The others followed. Their websites were taken down from local ISPs. Users got 30 days to withdraw funds. After that? No more deposits. No more trading. No more access.

The Licensing Checklist

Getting licensed isn’t easy. The SEC doesn’t just ask for paperwork. They demand proof you can handle real money, real risk, and real people. Here’s what you need:

• Register as a domestic corporation - You must incorporate in the Philippines. Foreign companies can’t just file from abroad.
• Minimum paid-up capital of PHP 100 million (about $1.8 million USD) - This money must be in Philippine pesos or USD, held in a local bank. Crypto assets don’t count. You need cold, hard cash on hand.
• Physical office in the Philippines - You can’t use a virtual address. You need a real building, with staff, phone lines, and a local contact point.
• Full AML and KYC systems - You must verify every user’s identity, track transaction patterns, and report suspicious activity to both the SEC and the Anti-Money Laundering Council. No exceptions.
• Separate customer funds - Your users’ crypto and fiat must be stored in completely separate accounts from your company’s money. No commingling. No using customer funds to cover losses.
• 30-day pre-disclosure rule - Before you market any crypto asset (even a new token or staking product), you must file a disclosure document with the SEC and publish it on your website and social media. You can’t say things like “this coin will 10x.” You can only give facts - no promises.
• Monthly financial reporting - Every 30 days, you submit detailed reports on transactions, user growth, revenue, and reserves. The SEC watches everything.

There are also fees. They’re not flat. They’re based on your gross revenue in the Philippines. The more you make, the more you pay. This isn’t just a tax - it’s a way to fund ongoing supervision.

What Happens If You Don’t Comply?

The SEC isn’t bluffing. Violations carry real teeth:

• Fines from ₱50,000 to ₱10 million per violation - One unlicensed transaction? That’s a fine. Ten thousand? That’s a fine. Every day you keep operating without a license? Another ₱10,000 per day on top.
• Website blocking - ISPs are ordered to cut off access. No more redirects. No more workarounds.
• Legal action against executives - Company owners and officers can be personally held liable if fraud or money laundering is found.
• Public blacklisting - The SEC publishes names of non-compliant platforms. Your reputation is destroyed.

By October 2025, over 200,000 Filipino users had already moved their assets off unlicensed platforms. The SEC didn’t need to shut them down with force - the threat alone pushed users to safer, compliant alternatives.

Who’s Already Licensed?

Some platforms moved fast. Youholder, Bitget, Cex.io, Bybit, and Bigone all submitted full applications before the July 5, 2025 deadline. They hired local legal teams, opened offices in Makati or Bonifacio Global City, and set up local bank accounts. They now display their SEC license numbers on their websites - a badge users can click to verify.

These platforms also changed their marketing. No more “earn 15% APY!” banners. Instead, they now show clear risk disclosures: “Crypto assets are volatile. Past performance does not guarantee future results.” They even added Filipino-language versions of their terms.

Why This Matters for Users

If you’re just a regular person trading crypto in the Philippines, this might feel like bureaucracy. But here’s the truth: before this law, there was no safety net. When a platform collapsed - and they did - users lost everything. No refunds. No recourse. No government help.

Now, if you’re using a licensed CASP:

• Your funds are segregated - if the exchange goes bankrupt, your crypto isn’t used to pay their bills.
• You’re protected by AML rules - you won’t be unknowingly used to launder money.
• You have a legal channel to complain - if something goes wrong, you can file a formal complaint with the SEC.
• You get clear disclosures - no hidden fees, no fake promises.

The SEC didn’t ban crypto. They just made it safer. And that’s the point.

Market Impact and Future Outlook

Despite the strict rules, the crypto market in the Philippines is still growing. Adoption is projected to hit 10.86% of the population by 2026 - that’s over 12.7 million users. Crypto revenue is expected to hit ₱1.1 billion this year.

Why? Because the rules created trust. Users now know which platforms are safe. Investors are stepping in. Local fintech startups are launching compliant crypto products. Even banks are starting to explore custody services for licensed CASPs.

But the cost of compliance is high. Smaller exchanges - especially those from countries with looser regulations - can’t afford the PHP 100 million capital requirement or the overhead of a local office. That means the market is becoming dominated by a few big players. Some see this as good: fewer scams, more stability. Others worry it’s anti-competitive.

The SEC says they’ll review the rules in 2027. But for now, the message is clear: if you want to operate here, you play by our rules. No exceptions.

What’s Next?

The SEC has signaled that future updates may include:

• More detailed rules for DeFi protocols and NFT platforms
• Guidelines for crypto ATMs and peer-to-peer trading apps
• Integration with the Bangko Sentral ng Pilipinas (BSP) for fiat-crypto on-ramps
• Potential tax reporting requirements for users above certain transaction thresholds

For now, the focus remains on exchanges. But if you’re building anything crypto-related in the Philippines - even a simple wallet app - you should assume you’ll need a license soon.