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The Bangko Sentral ng Pilipinas (BSP) has issued a memorandum urging all regulated entities to conduct appropriate due diligence, exercise heightened caution and vigilance, and apply enhanced scrutiny when dealing with virtual asset services providers (VASPs).
Virtual Assets May Pose Heightened Risks of Money Laundering
According to the central bank, VASPs, or companies that facilitate the exchange of virtual assets, including cryptocurrencies, may pose heightened risks of money laundering and terrorist financing.
Thus entities should only transact with crypto exchanges that have a VASP license from the BSP and Crypto Asset Service Provider (CASP) license from the Securities and Exchange Commission (SEC), the regulator said.
For the BSP, regulated entities must first ask for proof of registration or authority from the BSP, the SEC, and the Anti-Money Laundering Council before partnering with any VASP.
VASP Licensing Moratorium to be Periodically Reviewed
Making it straight to the point, the central bank emphasized that transactions or business relationships with VASPs and other counterparties that are unregistered, unauthorized, or unlicensed — whether operating locally or offshore—are strictly prohibited.
Lastly, the BSP pledged to periodically review the moratorium on VASP licensing in line with industry developments as it strengthens its monitoring, surveillance, and enforcement capabilities.
PH Regulators Unregistered Crypto Exchanges
Both the BSP and the SEC have been actively warning the public against using unregistered and unlicensed VASPs, which include crypto exchanges and other trading platforms.
- Before 2025 ended, the National Telecommunications Commission ordered internet service providers to immediately block access to 50 online trading platforms within the Philippine internet ecosystem.
- This was later confirmed by the BSP, which explained that it shared its investigation results with the NTC, which later on resulted in the blocking.
- One of the affected platforms was Interactive Brokers, which the SEC also issued a public advisory against.
In August 2025, the BSP announced that it extended its moratorium on the issuance of new licenses for VASPs. This means that no new crypto exchanges or other trading platforms will be able to secure a license from the central bank unless the ban is lifted.
Meanwhile, similar to the BSP, the SEC also requested the NTC to ban unregistered offshore crypto exchanges. According to the regulator, it is just balancing the interest of protecting the future onboarding of Filipinos and current users who were supposed to off-board upon the effectivity of the CASP.
The SEC then emphasized that it does not prohibit any exchange from operating in the Philippines as long as they register and comply with the CASP requirements.
Worth Reading: SEC Clarifies CASP Rules to Web3 Community: Here’s What to Know
This article is published on BitPinas: BSP to Financial Firms: Do Not Transact With Unregistered Crypto Exchanges
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