Crypto Licensing Requirements in Philippines by SEC: What You Need to Know in 2025

If you're running or using a crypto exchange in the Philippines, you need to know one thing: crypto licensing requirements in Philippines by SEC are no longer optional. As of July 5, 2025, any platform serving Filipino users must be officially registered with the Securities and Exchange Commission. No more hiding behind offshore servers. No more ignoring local laws. The rules changed, and the crackdown is real.

Who Needs a License?

The SEC calls them Crypto Asset Service Providers, or CASPs. That’s any business that handles crypto in any way for Filipinos. This includes exchanges, wallet providers, trading platforms, staking services, and even crypto ATMs if they’re targeting users in the country. It doesn’t matter if your company is based in Singapore, the U.S., or Estonia. If Filipino users can sign up, deposit, trade, or withdraw crypto through your platform, you’re required to get licensed.

The SEC made this crystal clear in May 2025 with Memorandum Circular No. 04 and No. 05. These aren’t suggestions. They’re legal mandates. And they’re backed by enforcement actions that have already removed giants like Binance from the local market in 2024. By August 2025, the SEC publicly named ten unlicensed exchanges - including OKX, Bybit, KuCoin, and Kraken - warning users they were operating illegally. These platforms still had millions of Filipino users. The SEC didn’t care. They shut them down anyway.

The Four Must-Have Requirements

Getting licensed isn’t a formality. It’s a major investment. Here’s what the SEC demands:

1. Physical Office in the Philippines - You can’t operate remotely. You need a registered business address with staff on the ground. This isn’t a PO box. It’s a real office with employees who can be contacted by regulators.
2. PHP 100 Million Paid-Up Capital - That’s about $1.8 million USD, and it must be in cash or fiat, not crypto. This money isn’t just for show. It’s meant to cover losses if something goes wrong. It’s a buffer to protect users if your platform collapses or gets hacked.
3. Full AML and KYC Systems - Every user must be verified. You must collect government-issued IDs, proof of address, and monitor transactions for suspicious activity. Reports go directly to both the SEC and the Anti-Money Laundering Council. No exceptions. No shortcuts.
4. 30-Day Disclosure Period - Before you can market any crypto asset, you must file detailed documents with the SEC. These include risk disclosures, how the asset works, who’s behind it, and why it’s not a security (unless it is). You must publish these on your website, social media, and ads - at least 30 days before you start promoting anything.

And yes, you have to pay fees. The SEC calculates them based on your gross revenue from Philippine users. Monthly financial reports are mandatory. Customer funds must be kept completely separate from your company’s money. No commingling. No using user deposits to fund operations. If you do, you’re breaking the law.

What Happens If You Don’t Comply?

The penalties are steep. For each violation, you could be fined between ₱50,000 and ₱10 million. If you keep operating without a license? You’ll pay an extra ₱10,000 per day until you stop. That’s not a typo. That’s daily. And it adds up fast.

But fines aren’t the only risk. The SEC has already blocked websites. Binance was taken offline in 2024 after users were given 90 days to withdraw. Other unlicensed platforms could face the same fate. Internet service providers in the Philippines are now required to block access to non-compliant sites. If you’re using one of those exchanges right now, you might wake up one day and find your app won’t load. Your funds could be frozen. And you’ll have no legal recourse.

Who’s Already Licensed?

Some exchanges moved fast. Youholder, Cex.io, BitGet, and Bigone all applied for licenses before the July 5 deadline. They’ve updated their apps, added local support teams, and published their disclosure documents as required. These platforms now have a clear advantage: they’re legal. They’re trusted. And they’re the only ones allowed to market to Filipinos going forward.

Even Bybit - one of the platforms named in the August 2025 advisory - has since applied for registration. They’re not out of the game. They’re just playing by the new rules. The message is clear: adapt or disappear.

Why This Matters for Regular Users

You might think, “I’m just trading crypto. Why should I care about licenses?” Here’s why: your money is at risk.

Before these rules, dozens of offshore exchanges promised high returns, low fees, and no questions asked. Many of them disappeared overnight. Users lost everything. No refunds. No legal protection. No way to recover funds.

Now, licensed platforms have to prove they can handle user funds safely. They have to show they’re not using your money to gamble on other investments. They have to keep records. They have to report suspicious activity. They have to be accountable.

If you’re using a licensed CASP, you’re not just trading crypto. You’re trading with a company that’s legally responsible for your safety. That’s a big difference.

The Bigger Picture

The Philippines isn’t trying to kill crypto. It’s trying to protect people from it. With over 12 million Filipinos using crypto in 2025 - and that number growing - the government needed rules. The SEC didn’t want to ban innovation. They wanted to make sure innovation didn’t come at the cost of people’s savings.

Other countries in Southeast Asia are watching closely. Thailand, Indonesia, and Vietnam are all debating similar rules. The Philippines is setting the standard. The capital requirement is high. The bureaucracy is real. But the result? A market where users can actually trust the platforms they use.

It’s not perfect. Some small exchanges can’t afford the PHP 100 million. Some international players may just walk away. But for those who stay? The Philippines is now one of the most transparent crypto markets in the region.

What’s Next?

The SEC says this is just the beginning. They’re already gathering feedback from licensed CASPs. They’re monitoring how the rules play out in practice. There could be adjustments next year - maybe lower capital requirements for smaller players, or clearer rules around NFTs and DeFi.

But one thing won’t change: if you want to serve Filipino users, you need to be registered. No exceptions. No loopholes. No more pretending the rules don’t apply to you.

If you’re a user: check if your exchange is licensed. Look for the SEC registration number on their website. If you can’t find it, assume it’s not legal. Move your funds.

If you’re a business: start the application now. The PhiliFintech Innovation Office at the SEC is the only place to apply. The process takes months. Don’t wait until the last minute. And don’t think you can skip the physical office or the capital requirement. The SEC isn’t bluffing.

The crypto world moves fast. But in the Philippines, the rules are now the fastest-moving thing of all.