Philippines: Adopted Guidelines for Virtual Asset Service Providers (VASP) (Circular No. 1108)

On 21 January 2021, the Bangko Sentral ng Pilipinas (BSP) adopted Guidelines for Virtual Asset Service Providers (VASPs) through the issuance of Circular No. 1108. This regulatory framework replaces Section 902-N of the Manual of Regulations for Non-Bank Financial Institutions, focusing on the authorisation, registration, and licensing of entities engaged in digital payment services, including cryptocurrencies. The Guidelines focus on enabling financial innovation while ensuring the integrity and stability of the financial system. It addresses risks associated with virtual assets, such as money laundering, terrorist financing, and consumer protection, by setting out operational and reporting obligations for VASPs. The Guidelines also establish minimum capital requirements and mandate the adoption of robust cybersecurity measures. VASPs are required to secure a Certificate of Authority to operate, adhering to the Bangko Sentral's standards on risk management, IT security, and consumer protection.