Philippines Launches New Reporting System for Virtual Asset Providers by 2025
The Philippines is enhancing regulation of the virtual asset sector with a new reporting system initiated by the Bangko Sentral ng Pilipinas (BSP). A reporting portal is scheduled for launch on January 1, 2025. A draft circular has been released outlining enhanced data submission requirements for virtual asset service providers (VASPs).
New Reporting Portal for VASPs
VASPs must submit thirteen reports at specified intervals to ensure thorough oversight. Monthly submissions require two reports detailing transaction volumes, values, and total assets under custody. Quarterly filings include seven data points such as operating office locations, websites, and account holder demographics. Semi-annual duties involve three further reports, while an audited financial statement is necessary each year.
This initiative aims to address data gaps, minimize information inconsistencies, and improve the quality of virtual asset-related data. The BSP seeks to establish a transparent and secure ecosystem through these requirements, promoting trust and stability within the virtual asset market.
Initially, VASPs will continue submitting Money Service Business reports through current channels during the first half of 2025. Afterward, submissions must shift to the new reporting portal unless alternative guidelines are issued by the BSP. This adjustment aims to enhance data collection efficiency, enabling improved monitoring of virtual asset operations nationwide.
Non-compliance with updated reporting standards will result in enforcement actions, highlighting the BSP’s commitment to stringent regulatory oversight. VASPs have until December 13 to provide feedback on the proposed framework, allowing the BSP to incorporate industry perspectives effectively.
Currently, only 14 VASPs hold registration with the BSP, with seven actively operating. Notable entities include Maya Philippines, Philippine Digital Asset Exchange (PDAX), Betur Inc. (COINS PH), Bloomsolutions Inc., Direct Agent 5 (SurgePay Mobile App), Moneybees Forex, and TopJuan Technologies Corp. The BSP advises the public to remain vigilant when transacting with unregistered or overseas-based VASPs to mitigate risks linked to unauthorized operators.
Philippines Bans Online Gambling
In July 2024, President Ferdinand Marcos Jr. banned online gambling operations due to connections with crimes including murder, kidnapping, and human trafficking. This ban targets Philippine Offshore Gaming Operators (POGOs), which have faced accusations of engaging in financial scams and money laundering beyond their primary activities.
The central bank’s regulation of virtual assets aligns with the governmental crackdown on POGOs, demonstrating a unified strategy to strengthen financial oversight and ensure public safety. The introduction of 13 new reporting measures underscores efforts to create a secure framework for virtual asset transactions while balancing innovation with stringent regulatory standards.
In May 2020, the central bank issued guidelines for virtual assets and service providers to curb risks like money laundering and terrorist financing. The bank acknowledged the efficiency and cost-effectiveness of virtual asset transfers while emphasizing the need to address risks stemming from anonymity, rapid transaction speeds, price fluctuations, and global reach.