Remote VASP serving residents in Philippines
Foreign-incorporated entity that offers exchange, custody, or transfer services to residents of a jurisdiction without establishing a local entity or office.
Remote VASP is conditionally permitted in Philippines with a local entity, subject to AML obligations and high licensing burden.
Verdict Details
- Permitted
- conditional
- Local entity required
- Yes
- Licensing burden
- High
- Last updated
- 2026-07-13
AML Obligations
- VASP license from BSP requires AML compliance under the Anti-Money Laundering Act (AMLA) overseen by the Anti-Money Laundering Council (AMLC)
- Travel Rule adopted — VASPs must collect and share originator/beneficiary data (name, account/wallet number, physical address, unique ID, date/place of birth) for transactions with sanctions screening against OFAC, UN, EU, and HMT lists
- Threshold for Travel Rule: PHP 50,000 (approx. ~$900 USD)
- CASPs registered with SEC must comply with strict AML procedures and submit regular reports to SEC and AMLC with detailed documentation 30 days prior to any activity
- SEC fines up to ₱5 million (~US$88,000) per violation, plus daily penalties; BSP may impose license suspension/revocation and potential imprisonment
Key Restrictions
- Remote (non-resident) VASPs cannot serve Philippines residents without local licensing — both BSP VASP license (Circular 1108) and SEC CASP registration require local incorporation and physical office in the Philippines
- New VASP licenses from BSP are frozen indefinitely as of 2025, effectively blocking new entrants; only existing licensees can operate
- 60% Filipino ownership may apply to BSP-licensed VASPs
- CASPs under SEC require minimum capital of ₱100 million with physical incorporation in the Philippines
- BSP VASP license requires PHP 50M (~$900K USD) minimum capitalization
- Enforcement actions (Binance 2024, 50+ platforms in 2025) demonstrate active website/app blocking, geo-blocking orders, and cease-and-desist actions against unlicensed foreign operators serving residents
Key Risks
- High enforcement risk: SEC and BSP have coordinated with NTC and telecom providers to block unlicensed foreign crypto platforms (Binance, OKX, Bybit, Kraken, KuCoin, Coinbase, Gemini, etc.) via ISP blocking, with criminal complaints and cease-and-desist orders
- Regulatory ambiguity: oversight splits between BSP (custody, exchanges, on/off-ramps under Circular 1108) and SEC (issuance, marketing, trading under CASP rules), creating dual-enforcement exposure
- New license moratorium for VASPs means no path to compliance for new entrants — only acquisition of or partnership with an existing licensee is feasible
- FATF Grey List exit context means heightened enforcement scrutiny on unlicensed operators
- Travel Rule data-sharing and sanctions screening create operational complexity for any compliant offering
Evidence
This verdict synthesizes the following facts. Each fact links to its primary source(s).
SEC Philippines — Securities token oversight, warnings against unlicensed offerings
BSP Circular 1108 (2021) — VASP licensing framework
VASP: VASP License from BSP (Circular 1108/2021). PHP 50M (~$900K USD) minimum capitalization. 6-12 months. BSP imposed moratorium on new VASP licenses in 2022 to assess existing licensees; partially lifted 2024. Coins.ph and PDAX are major licensed operators. 60% Filipino ownership may apply.
EXCHANGE: VASP license — PHP 50M minimum capitalization. High crypto adoption driven by remittances and gaming/play-to-earn (Axie Infinity).
Crypto asset service providers (CASPs) must register with the Philippine Securities and Exchange Commission (SEC) and maintain a minimum capital of ₱100 million with physical incorporation in the Philippines
New VASP licenses are frozen indefinitely as of 2025, prioritizing existing licensees.
Adopted: Yes, via BSP and SEC regulations governing VASPs, as part of efforts to exit the FATF Grey List; described as translating FATF recommendations into national law with a "clear and decisive stance."
Travel Rule adopted — threshold: PHP 50,000
VASPs must collect and share originator/beneficiary data (e.g., name, account/wallet number, physical address, unique ID, date/place of birth) for transactions, with sanctions screening against lists like OFAC, UN, EU, and HMT before sending/receiving; interoperability challenges noted globally, but no Philippines-specific protocols detailed.
SEC fines up to ₱5 million (~US$88,000) per violation, plus daily penalties; BSP may impose license suspension/revocation and potential imprisonment; aimed at preventing fraud.
Entity: Binance (world’s largest crypto exchange).
Violation: Operating without required authorization under the Crypto Asset Service Provider (CASP) framework.
Penalty: Geo-blocking; users given 90 days to exit the platform, with website and app access restricted via coordination with telecom providers.
Entities: OKX, Bybit, KuCoin, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, Poloniex (actively marketing to and serving Filipino users).
Entities: ~50 platforms including Coinbase, Gemini, and overlaps like OKX/Bybit/KuCoin (unlicensed virtual asset service providers/VASPs).
Violation: Operating without SEC licenses/registrations under CASP Rules and Guidelines (Memorandum Circulars No. 4 and No. 5, effective July 2025); providing/soliciting crypto trading services without authorization.
Violation: Operating without BSP authorization (BSP Circular No. 1108 for VASP regulations); non-compliance with AMLA via AMLC oversight.
Evidence fact ph.enforcement.bsp-request-to-ntc not found (may have been renamed).
Strict compliance with anti-money laundering (AML) procedures is mandatory
CASPs must submit regular reports to the SEC and the AML Council with detailed documentation 30 days prior to any activity
Issuers must register as VASPs with BSP, maintaining PHP 100 million minimum paid-up capital (SEC CASP), adequate reserves, cybersecurity, and a local office.
Verdict Attribution
- Source:
- AI-Generated · Unreviewed
- AI synthesized:
- 2026-07-13 (deepseek-chat)
- Last updated:
- 2026-07-13
- Confidence:
- high
This verdict was produced by an AI model from the underlying facts. Confirm with counsel before relying on it for material decisions.
Conditional — a remote VASP (foreign-incorporated, no local office) cannot lawfully serve Philippines residents; both BSP and SEC frameworks require local incorporation, physical office, and licensing (VASP license under BSP Circular 1108 or CASP registration with SEC), with new VASP licenses frozen as of 2025, and enforcement against unlicensed foreign platforms (Binance, OKX, Bybit, Kraken, etc.) is active and aggressive including ISP blocking and criminal complaints.
Questions this verdict aims to answer
- May a non-resident provider serve residents from abroad?
- Does cross-border service trigger licensing, registration, or AML obligations?
- What enforcement risk exists for unlicensed remote operators?