Crypto in the Philippines: Legal Status, Taxes, and Regulated Exchanges

With many local citizens playing blockchain games for a living, crypto in the Philippines is on the rise. 

Although more than 40% of the country’s population remains unbanked in 2024, the internet coverage is pretty high. Therefore, it’s no wonder that cryptocurrencies are gaining popularity, especially in rural areas.

The legal status of blockchain and crypto plays not the last role in the adoption of the new technology. 

This article reviews the key aspects of crypto in the Philippines aiming to help those who want to invest in crypto while staying in this country.

Is Crypto Legal in the Philippines?

Anyone wishing to use crypto in the Philippines may do that freely as crypto transactions are legal in this region. Yet, since cryptocurrencies are not issued by the Central Bank (Bangko Sentral ng Pilipinas, a.k.a. BSP), they are not legal tender.

Crypto is not only a subject of investment or trading activities in the Philippines. It also often serves the following purposes:

• Remittance. A survey conducted by the Philippine Statistics Authority revealed that in 2022, there were close to 2 million migrant workers in the Philippines. Therefore, many local companies prefer paying salaries in crypto to reduce costs and simplify remittance processes.
• Means of payment. Many local merchants accept crypto as an additional payment method.

Who Regulates Crypto in the Philippines?

Two regulators now share authority over crypto in the Philippines, and platforms must satisfy both.

The Bangko Sentral ng Pilipinas (BSP) governs Virtual Asset Service Providers (VASPs) under Circular No. 1108, issued in 2021. Any company operating a crypto exchange, wallet service, or cross-border transfer platform must obtain a Certificate of Authority from the BSP, implement KYC and AML/CFT controls, and maintain secure custody of customer funds.

The Securities and Exchange Commission (SEC) stepped in as a co-regulator with full force in 2025. SEC Memorandum Circular No. 4, Series of 2025 (the CASP Rules) and MC No. 5, Series of 2025 (the CASP Guidelines) took effect on July 5, 2025. Together they require Crypto-Asset Service Providers to register with the SEC, meet disclosure and marketing standards, and segregate customer assets. Platforms that offer services touching on crypto-asset securities face additional obligations under the Securities Regulation Code.

The practical result: a crypto exchange serving Philippine users now needs a BSP VASP license AND an SEC CASP registration. Operating without both exposes a platform to enforcement action, including potential access blocking by regulators.

The SEC also launched StratBox in April 2025, a regulatory sandbox that lets qualifying CASPs test innovative services under supervisory oversight before full licensing. Startups exploring new token products or DeFi models can apply to operate within StratBox while working toward full CASP registration.

Regulatory Timeline

Here is how the regulatory picture has shifted over the past four years:

• 2017: BSP issues Circular 944, the first formal acknowledgment of virtual currency exchanges.
• 2021: BSP releases Circular 1108, establishing the full VASP framework with AML/CFT requirements and Certificate of Authority requirements.
• 2024: BSP and SEC issue public advisories warning against unlicensed platforms and crypto investment scams.
• April 2025: SEC launches StratBox, a regulatory sandbox for CASPs to test new services under supervisory oversight.
• July 5, 2025: SEC Memorandum Circulars 4 and 5 take effect, creating the formal CASP registration regime and marketing guidelines. The Philippines now operates under a dual-regulator model.
• Mid-2025 onward: Active enforcement. Regulators begin flagging unregistered exchanges and signaling platform-blocking measures for non-compliant operators.

Crypto Exchanges in the Philippines

Not every exchange on the market is licensed to operate in the Philippines. Using an unregistered platform puts your funds at risk and, as of 2025, regulators can block access to non-compliant services without warning.

The table below covers the main options available to Philippine residents as of mid-2025. Regulatory status reflects publicly available BSP and SEC information at the time of publication. Always verify current status directly with the BSP or SEC before depositing.

👉 Quick takeaway: Coins.ph, Maya.ph, PDAX, and Coexstar are all BSP VASP licensed and support PHP, making them the safest options for Philippine residents. Binance and KuCoin offer wider access but are not registered with BSP or the SEC as of 2025 and carry regulatory risk.

Note: Global platforms listed above have not completed BSP VASP or SEC CASP registration as of this writing. The SEC has warned that unregistered platforms may be blocked. Uphold, Coinmama, Bitfinex, and Bithumb fall into the same unregistered category.

How to choose the right platform:

• You are new to crypto and want to fund via GCash or a local bank: Coins.ph or Maya.ph
• You want to trade a wider range of coins with PHP pairs: PDAX
• You need OTC volume above 500,000 PHP: Coexstar
• You want access to global altcoins and accept the regulatory risk: KuCoin or Binance, but keep only what you are willing to lose on the platform

Enforcement and What Happens if You Use an Unregistered Platform

Since mid-2025, regulators have moved from issuing warnings to taking active enforcement steps against unregistered crypto platforms in the Philippines.

The SEC has the authority to issue cease-and-desist orders against non-compliant CASPs and can coordinate with internet service providers to block access to flagged platforms. The BSP can revoke or refuse to renew VASP Certificates of Authority. Both agencies have issued public advisories naming specific platforms.

For users, the risks are practical. If a platform gets blocked mid-withdrawal, your funds may be inaccessible. If a platform is flagged as a scam, there is no deposit insurance or government compensation scheme covering crypto losses.

Three things to check before you deposit:

1. Search the BSP’s official registry for a current VASP Certificate of Authority.
2. Search the SEC’s official registry for a CASP registration.
3. Check both agencies’ advisory pages for the platform’s name in any warning or cease-and-desist list.

If a platform appears on neither registry and is not listed in the StratBox sandbox, treat it as unregistered.

How To Buy Crypto in the Philippines

The safest starting point is a BSP-licensed exchange that also holds SEC CASP registration. That combination is now the regulatory baseline for platforms serving Philippine residents.

Here is the step-by-step process for a local exchange like Coins.ph or PDAX:

1. Create an account. Use your personal email and set a strong password. Enable two-factor authentication immediately.
2. Complete KYC. Upload a government-issued ID (passport, PhilSys card, or driver’s license) and a selfie. Local exchanges typically approve KYC within 24 hours.
3. Deposit PHP. Options usually include GCash, Maya, InstaPay, PESONet, or over-the-counter bank deposit. Check the deposit fee before you transfer. Coins.ph charges 0% for GCash top-ups; PDAX charges vary by method.
4. Buy crypto. Select the asset, enter the peso amount, and confirm. Bitcoin and USDT have the deepest PHP liquidity on local platforms.
5. Move funds to a self-custody wallet. Do not leave large amounts on any exchange. A hardware wallet or a non-custodial mobile wallet gives you sole control of your private keys.

Expect the full process to take 24 to 48 hours from registration to first purchase, mostly due to KYC review time.

Crypto Tax in the Philippines

In the Philippines, cryptocurrencies have no official definition. Neither has the Bureau of Internal Revenue released any specific guidelines on this question.

Nonetheless, crypto transactions in the Philippines are subject to a capital gain tax of up to 15%. This tax applies to all the profits one obtains in crypto, be it investment, trading, or the income derived from selling goods and services.

In some specific situations, additional taxes may apply, such as:

• Income tax. This tax may apply to the profits derived from long-term crypto investments. The size of the tax varies depending on the net taxable income and may reach 35%.
• Value Added Tax (VAT). The income obtained from selling goods and services may also be subject to VAT which equals 12%.

What does this look like in practice? Three scenarios:

Scenario 1: You bought Bitcoin worth 50,000 PHP in January and sold it for 80,000 PHP in October. Your gain is 30,000 PHP. At the 15% capital gains rate, you owe 4,500 PHP in tax.

Scenario 2: You earn crypto as salary from a remote employer. That income is treated as employment income, not a capital gain. The progressive income tax rate applies, reaching up to 35% on income above 8,000,000 PHP annually.

Scenario 3: You run an online store and accept Bitcoin as payment for goods. The revenue is subject to 12% VAT if your annual sales exceed the VAT threshold (currently 3,000,000 PHP). You also report the peso equivalent as business income.

Note: The Bureau of Internal Revenue has not released a dedicated crypto tax circular as of mid-2025. These scenarios reflect how existing tax rules are generally applied to crypto transactions. Consult a Philippine tax professional before filing.

Current State of Crypto in the Philippines

In 2021, NTRC Tax Research Journal, an official media backed by the Philippines government, conducted research on the regulation of cryptocurrencies within the region. The report revealed that out of the 300 million cryptocurrency users worldwide, 6.9 million were from the Philippines.

Another report from Statista, in turn, predicts that this number is expected to reach 13.95M by 2028.

Obviously, the interest in the new digital payment method tends to grow among the local population. At the same time, the Philippine government creates a clear regulatory framework to boost the usage of the new technologies.

In such conditions, it’s no wonder that the 2023 Chainalysis Global Crypto Adoption Index ranked the Philippines sixth globally for crypto adoption. Thus, the Philippines stands forth as one of the leading countries in Southeast Asia when it comes to cryptocurrency adoption.

Crypto Companies in the Philippines

In addition to the cryptocurrency exchanges mentioned above, there are many other crypto startups with an official registration in the region. Among them are the following:

• Avaland: a Philippine-based startup that built the Sacred Trees NFT collection, linking token ownership to real-tree preservation. Current operational status should be verified before referencing as an active project.
• Unlockd: a DeFi protocol providing liquidity to NFT holders
• Vasu International Payment Solutions: a payment processor offering its customers a variety of payment methods including crypto
• Twala: a blockchain-based solution for tamper-proof digital signatures
• Alaga Health: a digital health marketplace and health services hub

The Philippines has become home not only to crypto startups but also to many VC funds seeking potential unicorns. 

Thus, Infinity Ventures Crypto, Delphi Ventures, Yield Guild Games, Gentree Fund, and many other blockchain investment companies reside in the Philippines.

Frequently Asked Questions

Is crypto taxed in the Philippines?

Yes, if you make profits while being engaged with crypto in the Philippines, you must pay a capital gain tax that equals 15%. Also, in some specific cases, an income tax or VAT may apply.

Is Bitcoin mining legal in the Philippines?

There is no explicit ban on crypto mining in the Philippines. Therefore, one may freely get involved in crypto-mining activities. Companies providing cloud mining services have to obtain a VASP license, though.

What is StratBox?

StratBox is the SEC’s regulatory sandbox for Crypto-Asset Service Providers, announced in April 2025. It lets qualifying companies test new crypto-asset services under direct SEC supervision before they obtain full CASP registration. The goal is to allow innovation without exposing the broader public to unregulated products. Crypto startups developing novel token structures, DeFi services, or new exchange models can apply to operate within StratBox as a step toward full licensing.

Can I withdraw Bitcoin in the Philippines?

Yes, there are many services helping cryptocurrency users cash out their assets in the Philippines. Some of the most popular solutions include PayMaya, GCash, and InstaPay.

What is the SEC CASP framework and who does it affect?

The SEC’s Crypto-Asset Service Provider (CASP) framework, established under Memorandum Circular No. 4-2025, covers any entity that offers crypto-asset services to the public in the Philippines. That includes exchanges, brokers, custodians, and platforms offering crypto-asset securities. MC No. 5-2025 adds rules specifically governing third-party marketing of crypto services. Both circulars took effect on July 5, 2025. If you use a platform that has not registered as a CASP, you are using an unregistered service that the SEC can move to shut down.

Who regulates crypto in the Philippines?

Two agencies share regulatory authority. The Bangko Sentral ng Pilipinas (BSP) licenses Virtual Asset Service Providers under Circular No. 1108 and sets AML/CFT requirements. The Securities and Exchange Commission (SEC) regulates Crypto-Asset Service Providers under Memorandum Circulars 4 and 5, Series of 2025, which took effect on July 5, 2025. Platforms serving Philippine users generally need registration with both regulators.