The SEC in the Philippines has released two new rules for crypto-asset businesses.
Issued as Memorandum Circular Nos. 4 and 5, Series of 2025, these guidelines took effect on Thursday. They apply to any firm that markets, issues or trades digital tokens in the country.
Licensing and Capital Requirements
Under the new framework, all crypto-asset service providers must register as local companies. They need at least $1.7 million in paid-up capital.
Firms must also keep a physical office in the Philippines. Before opening their doors, they must secure a license from the SEC.
The rules demand clear information on each digital asset. Providers have to submit documents that explain how a token works, its risks and the technology behind it.
They must also separate customer holdings from their own funds. Regular reports on operations are required, helping regulators keep a close watch on each business.
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Definition and Scope
A crypto-asset is now defined as any cryptographically secured digital value or right recorded on a distributed ledger.
The SEC has made it clear that no tokens or tokenised securities can be sold without an approved disclosure document or registration statement. All trading platforms and marketing services must register and gain approval before they operate.
Market Size and Risks
The Philippine finance secretary has said the local crypto market is worth about one hundred seven billion dollars. Millions of Filipinos hold digital assets, often through overseas platforms.
Until now, many of these services have flown under the radar of any regulator. The new regime aims to bring this vast market into the light and reduce the chances of fraud or abuse.
Regulatory Sandbox for Innovation
Alongside the rules, the SEC launched StratBox, a regulatory sandbox for licensed crypto firms. This initiative allows approved companies to test new products under supervision. Think tank Infrawatch praised the step as a boost for innovation.
At the same time, it warned that unlicensed platforms still pose a serious threat. Policymakers must strengthen enforcement to shut down rogue operators.
Industry Reaction
Terry Ridon, convenor of Infrawatch, called StratBox a welcome move for regulated players. He said the sandbox can drive new digital services in the Philippines.
Yet he stressed that the government must act against firms that operate without a license. “Crypto misuse remains high in unregulated outlets,” he said, urging tighter crackdowns.
The SEC’s new crypto-asset rules mark the country’s most thorough digital asset framework so far. By demanding licenses, clear disclosures and regular oversight, the regulator hopes to protect investors and boost confidence.
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