The Bangko Sentral ng Pilipinas (BSP) has issued new guidelines that prohibit virtual asset service providers (VASPs) from trading privacy coins as regulators move to bring greater transparency and consumer protection to the country’s digital asset market.
Under the BSP Memorandum No. M-2026-023, the central bank “seeks to clarify regulatory expectations for VASPs” by ensuring due diligence reviews of coins and tokens offered to customers. BSP also prohibited VASPs from offering or listing anonymity-focused virtual assets, most popularly known as privacy coins.
The memorandum is part of BSP’s broader risk management framework for digital currency platforms. Among the guidelines are ongoing monitoring of listed assets and the establishment of internal risk indicators, such as a drop in coin’s value or a decrease in trading activity. If an asset breaches these thresholds, it must undergo a reassessment and may trigger an automatic review or removal from the digital currency platform.
“VASPs are also required to conduct ongoing monitoring of the criteria applied during the listing of virtual assets, and to define thresholds for deviations from these standards, which will act as triggers for the delisting of a virtual asset,” BSP said.
In the new guidelines, the central bank mandates that firms “establish a robust due diligence and accreditation process for selecting the virtual assets (VAs) that will be listed or traded on their platforms.” In this process, every token undergoes rigorous evaluation before it reaches the investing public.
BSP grouped the assessment criteria into six pillars to standardize the evaluation process. It includes the issuer’s background, market maturity, and the use of the digital asset. In addition, the assessment also covers transparency, traceability, and security as well as redemption, liquidity, and reserves, while the final pillar focuses on legal and compliance requirements.
Under the first pillar, VASPs are required to verify the identities of the coin issuer’s beneficial owners and to audit the coin issuer’s financial statements.
For the second pillar, market maturity, exchanges must assess a coin or token’s current or planned market capitalization and its average trading volume over the past 30 days. Higher capitalization means a more stable market foundation and has the potential for wider adoption.
For safety purposes, the BSP guidelines set “red lines” that indicate the removal of a token. Such measures become mandatory when specific risk events occur, like the withdrawal of liquidity backing, issuer insolvency, fraud or controversies, or when the asset is subject to regulatory enforcement.
“VASPs shall either suspend the offering or immediately proceed with the delisting of a specific token or coin to safeguard customers from further asset losses,” the memorandum read.
Technical integrity and security are the top priorities, and delisting is required if there is a “material security threat to the coin/tokens’ cybersecurity infrastructure,” or if it is subject to “market abuse or abnormal market or price movements.”
The strict guidelines follow BSP’s objective of promoting financial stability and protecting customer welfare by ensuring that virtual asset services are safe, sound, and consumer centric.
SEC put brakes on BlockShoals Technologies’ operations
In a related development, the Philippines’ Securities and Exchange Commission (SEC) has reported that BlockShoals Technologies Inc.—a digital currency exchange also operating as Binance‘s new local crypto partner—is not yet allowed to commercially operate or offer digital currency products and services in the country as it is still undergoing a 90-day testing period.
“The indicated 90-day period is intended solely for the establishment and integration of the technical infrastructure and systems between BlockShoals and its local VASP partner,” the SEC said. “Any system access or operational connectivity provided during this period is limited strictly to activities necessary for technical integration and sandbox testing. This should not be construed as the commencement of public onboarding, public trading operations, or broader market reopening.”
Under the testing plan, BlockShoals must integrate its systems with VASPs that the BSP licenses. The process focuses on developing secure fiat rails that enable seamless on- and off-ramping of Philippine pesos, allowing users to convert fiat to digital currency and vice versa.
BlockShoals partnered with Binance to launch its regulated testing within StratBox. With Binance’s collaboration, BlockShoals maintains the digital asset exchange’s responsibility for local regulatory compliance and user-facing operations, while Binance provides the backend tech and strategic support.
In November 2025, BlockShoals received in-principle approval from the Commission En Banc and a Notice to Proceed dated April 14 this year, enabling the company to operate as a Crypto Asset Intermediary (CAI) in accordance with SEC Memorandum Circular No. 9, Series of 2024.
“This partnership is an opportunity to demonstrate that global digital asset platforms and local regulatory frameworks can work together constructively,” Blockshoals said. “As a Philippine-incorporated company operating under the direct supervision of the SEC, we are focused on building a secure and locally accountable platform for Filipino users.”
During the testing phase, BlockShoals must operate under strict regulatory oversight from Arden Consult to ensure full compliance with the SEC StratBox framework and relevant laws. Arden Consult is an advisory and legal firm specializing in facilitating market entry for highly regulated sectors, including fintech, iGaming, and technology, media, and telecommunications.
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