The Philippines as a crypto jurisdiction: Licensing, regulation, and growth
The Philippines is emerging as one of the key jurisdictions for obtaining a crypto license, offering a transparent regulatory framework with clearly defined licensing conditions.
The regulatory authority is the Bangko Sentral ng Pilipinas, which provides a solid legal foundation for Virtual Asset Service Providers (VASPs) offering virtual currency exchange, virtual wallets, and other crypto-related services.
Obtaining a BSP license positions your company at the heart of the rapidly growing Southeast Asian market.
The Philippines is internationally recognized for its flexible and innovative approach to virtual asset regulation, stable business environment, and rapidly increasing domestic demand for crypto exchanges and related services.
Key advantages of the license:
- Official recognition and oversight by the BSP, confirming the legality of the company’s operations.
- Standardized and clearly defined compliance and AML/CTF requirements.
- Rapidly growing interest in cryptocurrencies within the country and region.
- Ability to register and operate as a VASP or crypto exchange within a reasonable timeframe.
- Wide range of permitted services: virtual wallets, OTC trading, international remittances, crypto payments for businesses.
- Potential to reach millions of customers in Southeast Asia and expand to international markets.
Obtaining a cryptocurrency exchange license provides your company with a legitimate, scalable, and sustainable entry into the Asian virtual asset market.
Types of activities covered by the Philippine crypto license
A cryptocurrency activity license in the Philippines – crypto license Philippines, VCE (Virtual Currency Exchange) or VASP (Virtual Asset Service Provider) – grants companies the right to carry out a range of regulated cryptocurrency operations.
Among the permitted activities:
- Digital asset exchange
- Provision of virtual wallets
- Payment solutions and crypto-processing services
- Other activities subject to BSP regulation
| Service type | Covered by Philippine crypto license? |
| Cryptocurrency exchange (buy/sell) service | Yes |
| Crypto-to-crypto and fiat conversion service | Yes |
| Virtual asset wallet service | Yes |
| OTC and crypto brokerage service | Yes |
| Cross-border remittances and payments | Yes |
| Merchant payment gateway service | Yes |
| Peer-to-peer (P2P) crypto trading service | Yes |
| Crypto asset listing/token swaps | Yes (subject to BSP approval) |
| White-label trading solutions | Yes |
| Digital asset management (with BSP approval) service | Yes |
Every company holding a Philippine crypto license is required to comply with AML, KYC, and risk management requirements. At the application stage, a full set of operational and compliance documentation must be provided.
Additional provisions:
- Licensed companies may provide wallet custody and management services, facilitating transactions and protecting clients’ virtual assets.
- Some business models, such as IEO (Initial Exchange Offering) or management of complex virtual assets, require deeper development and additional interaction with the BSP.
- The regulator (BSP) expects applicants to submit transparent, complete, and structured documentation, including a detailed description of the business model, before making a licensing decision.
Advantages of obtaining a crypto license in the Philippines
Obtaining a cryptocurrency license in the Philippines offers a unique combination of regulatory clarity, market access, and business opportunities – both domestically and internationally. The Philippine authorization model is designed to foster growth and development in the digital asset sector. The authorization will be useful for companies planning to operate in cryptocurrency exchange, virtual assets, or virtual wallets.
Key advantages:
- Officially recognized regulatory status: the authorization issued by Bangko Sentral ng Pilipinas provides legal certainty for companies offering virtual asset and crypto exchange services.
- Scope of permitted activities: the authorization allows operation as a virtual currency exchange, crypto-to-crypto and fiat-to-crypto exchange, virtual wallet management, and payment and remittance services – all within a regulated framework.
- Market: the Philippines is experiencing rapid growth in virtual asset users and high demand for secure, locally regulated crypto exchanges and trading platforms.
- Clarity, reliability, and business orientation: the application process is transparent, and the BSP supports local and foreign investors. Companies can expect reasonable licensing costs and prompt application processing.
- Reputation and business credibility: at both regional and global levels, holding a Philippine license enhances trust and reputation in the financial sector and facilitates relationships with local banks and international payment networks.
- Access to banking and payment infrastructure: licensed companies can open local bank accounts, use them for virtual asset operations, and connect to merchant payment gateways, including on/off-ramp capabilities.
- Affordability: licensing, operational, and regulatory maintanance costs are relatively low compared to jurisdictions like Singapore or Hong Kong, making this jurisdiction attractive to fintech startups and international exchanges.
- Business model flexibility: the authorization accommodates various models – crypto exchanges, OTC brokers, remittance services, and payment system operators.
| Advantage | Crypto license in the Philippines |
| Regulatory recognition (BSP) | Yes |
| Crypto exchange, wallet, and OTC market | Yes |
| Access to banking services and payments | Yes |
| Low or moderate licensing costs | Yes |
| Rapidly growing user base | Yes |
| Flexible company registration | Yes |
| International partnership | Supported |
The cryptocurrency authorization combines regulatory certainty, local opportunities, and cost-efficiency. For companies and entrepreneurs planning to launch a crypto exchange, digital wallet, or virtual asset–related business in Southeast Asia, the Philippines represents a rapidly developing market that delivers real business value. Prifinance provides full legal support at every stage of obtaining a crypto license – from selecting the optimal legal model and preparing documentation to liaising with the BSP. We help businesses enter the Southeast Asian market legally, quickly, and in full compliance with all regulatory requirements.
Comparison of the Philippine crypto license with other jurisdictions
To assess whether the Philippines is the optimal jurisdiction for obtaining a crypto license, it is necessary to compare the licensing process in the Philippines with other countries issuing licenses, taking into account the regulatory environment, business climate, and authorization reputation.
The Philippines offers a unique combination: a balanced regulatory model, reasonable fees, and genuine business opportunities in the digital asset and trading sector.
| Jurisdiction | License type | Regulator | Licensing cost | Time to launch | Compliance burden | Market access | Banking access |
| Philippines | Virtual Currency Exchange (VCE) | BSP | Moderate | 3–6 months | Medium | ASEAN, Global | Local banks (Yes) |
| Singapore | Major Payment Institution (MPI) | MAS | High | 4–6 months | High | Asia-Pacific | Difficult |
| Hong Kong | VASP | SFC | 6–9 months | 6–9 months | High | Asia, Global | Difficult |
| Lithuania (EU) | VASP (MiCA) | FNTT / Bank of Lithuania | Low | 1–3 months | Medium/High | EU, Global | Yes |
| USA | MSB and State Licenses | FinCEN, State Regulators | Very High | 6–18 months | Very High | USA (limited) | Difficult |
| Offshore | VASP/Exchange | Local Authorities | Low | 1–2 months | Low | Global | Often problematic |
Key features
- A cryptocurrency authorization in the Philippines provides companies and organizations with a recognized legal basis for operating as a crypto or virtual asset service provider, supported by the BSP and set against the backdrop of the country’s growing crypto community.
- Unlike Singapore and Hong Kong, where licensing costs are high and regulatory demands are strict, the Philippine crypto authorization can be obtained with lower expenses and fewer regulatory barriers.
- Despite the appeal of Lithuania and the EU (under MiCA) for quick access to the European market, their reach is limited. The Philippines offers broad access to Southeast Asian markets without entry barriers.
- The USA remains one of the most challenging jurisdictions for licensing due to fragmented regulation and high compliance costs. In this context, the Philippines represent a more accessible and cost-effective alternative.
- Some offshore licenses can be obtained more cheaply and quickly; however, their low regulatory recognition and difficulties in connecting with banking partners limit their practical value.
- The combination of the Philippines’ banking infrastructure, reasonable licensing costs, and clear legal status enables licensees to operate confidently and legally.
A Philippine crypto license is an efficient and practical solution for companies seeking to enter the Southeast Asian market. Against the backdrop of challenges in other countries, the Philippines offers the most accessible, transparent, and business-oriented legal environment for operating under a government-issued license.
Requirements and regulatory examinations by the BSP
To obtain a cryptocurrency license in the Philippines, one must meet the legal, operational, and financial criteria established by the Bangko Sentral ng Pilipinas.
All applicants planning to operate in crypto exchange or virtual assets are required to comply with strict requirements designed to ensure transparency, security, and reliability of the country’s digital financial sector.
| Requirement | Description |
| Legal entity | Register a domestic corporation in the Philippines with local directors and a physical office. |
| Capitalization | Minimum paid-up capital of PHP 50,000,000 (approx. USD 900,000) is usually required for a full cryptocurrency license. |
| Business plan | Submission of a comprehensive business plan detailing all intended trading activities, risk management, and compliance programs. |
| Directors and officers | Appointment of “fit and proper” directors, a resident compliance officer, and an MLRO (Money Laundering Reporting Officer). |
| AML/KYC policies | Documented Anti-Money Laundering (AML) and Know Your Customer (KYC) procedures, including ongoing transaction monitoring, client onboarding, and reporting protocols. |
| Internal controls | Implementation of risk management, robust IT security systems, and internal audit functions for all licensed crypto and crypto-licensing activities. |
| Documentation | Submission of corporate documents, proof of capital, and background checks of shareholders, officers, and beneficial owners as required for a Philippine authorization. |
| Application fee | Payment of all BSP fees related to the processing and issuance of the license. |
| Office and substance | Maintenance of a bona fide office, local staff, and demonstrated operational presence in the Philippines. |
| Ongoing reporting | Regular submission of compliance, AML, financial, and suspicious activity reports as a condition for retaining the cryptocurrency authorization. |
Important notes:
- For certain types of activities, such as money transfers, fiat on/off-ramp, and payment gateway services, additional authorizations may be required beyond the Philippine crypto license.
- The application process includes a fit-and-proper check of all directors and shareholders, conducted by the BSP.
- Before issuing the license, the BSP may request a technical demonstration or proof of IT infrastructure and cybersecurity measures.
Applicants who submit a complete, well-structured package of documents, demonstrate a robust AML/KYC system, and confirm local economic substance receive the highest level of approval.
It is strongly recommended to engage professional legal and compliance consultants in the Philippines.
Prifinance supports clients at every stage of obtaining the license, from assessing the need for additional authorizations to preparing the full documentation required by the BSP. We help organize technical demonstrations, conduct preliminary compliance audits, and ensure fit-and-proper criteria are met. Our team also provides local presence and liaises with the regulator, increasing the chances of successful application approval.
Our experts
The Prifinance team consists of lawyers, tax advisors, and compliance experts with deep knowledge of BSP requirements and practical experience in obtaining crypto licenses. We support clients at every stage, from structuring and documentation to liaising with regulators and banks. Our specialists help launch crypto projects quickly, legally, and with minimal risk.
Nikolai Timofejev Expert with 15 years of experience in FinTech, payments, and business strategy.
Oleksii Kindratenko Expert in company registration, financial licenses, AML and tax consulting.
Eugeniu Bevziuc International business consultant with experience in company setup, remote work, and multilingual communication.
Key facts about obtaining a crypto license in the Philippines
| Category | Fact |
| Regulator | Bangko Sentral ng Pilipinas (BSP) |
| License name | Crypto license Philippines / Cryptocurrency exchange license Philippines / VASP / VCE |
| Main activities | Crypto-to-crypto and fiat-to-crypto exchange service, virtual wallets, payment service, OTC, remittances |
| Mandatory registration | Bureau of Internal Revenue (BIR), obtaining TIN |
| Requirements | Legal, operational, and financial criteria; AML/KYC; IT/cybersecurity; local economic substance |
| BSP checks | Fit-and-proper checks for shareholders and directors; technical demonstrations |
| Time to obtain (standard) | 3–6 months |
| Time to obtain (complex cases) | 6–9 months (remittances, fiat ramps, complex solutions) |
| Factors affecting timeline | Completeness of documentation, team’s experience, business complexity, readiness for BSP requests |
| Taxation | Standard corporate tax, no special crypto taxes; applies to local and foreign companies |
| Reporting | Quarterly and annual tax reporting, record-keeping |
| Tax audits possible | Yes, especially with high transactional activity or cross-border operations |
| Additional authorizations | May be required for remittances, fiat ramps, and payment gateways |
| International taxation | Possible benefits under double taxation agreements |
Registration of a crypto company in the Philippines: Stages and timeline for obtaining
The process of obtaining a license is regulated by the Bangko Sentral ng Pilipinas and involves a multi-stage procedure, at each of which a specific package of documents must be submitted, verification passed, and compliance requirements met.
A well-prepared application significantly increases the chances of quickly and successfully obtaining a license to conduct cryptocurrency activities in the Philippines.
Main stages of the application process
| Stage | Description | Estimated duration |
| Initial planning | Define the business model, confirm the Philippine crypto license requirements, engage legal and compliance consultants. | 1–2 weeks |
| Company registration | Register a Philippine corporation, open a local bank account, secure a physical office, appoint directors and staff. | 2–3 weeks |
| Document preparation | Prepare a detailed business plan, AML/KYC policies, IT security documentation, and all required corporate paperwork. | 3–6 weeks |
| Preliminary consultation (optional) | Consult with the BSP on structure, business plan, and adherence for the Philippine authorization. | 1–2 weeks |
| Application submission | Submit the complete application and pay all regulatory fees for the chosen Philippine license. | – |
| Regulatory review | BSP reviews the application, may request additional documents, clarifications, or conduct interviews/site visits. | 1–3 months |
| Conditional approval | BSP may grant conditional approval, requiring verification of operational readiness or final compliance. | 2–4 weeks |
| Final approval & license issuance | Upon meeting all conditions, BSP issues the Philippine license and the organization may begin operations. | 1–2 weeks |
| Ongoing adherence | Regular AML/KYC audits, transaction monitoring, and reporting as conditions for maintaining the Philippine license. | Ongoing |
Average licensing timelines:
- Standard crypto exchange: 3–6 months
- Complex or multi-service licenses (including remittances, fiat ramps, comprehensive solutions): 6–9 months
Key factors affecting timelines:
- Completeness and clarity of documents submitted with the application
- Experience of the management team and local compliance specialists
- Complexity of the planned licensed activities
- Ability to respond promptly to BSP requests and requirements
Recommendations for optimizing the process:
- Engage local legal, accounting, and compliance experts familiar with the Philippine authorization application process
- Conduct a pre-licensing consultation with the BSP – this helps identify and eliminate potential obstacles in advance
- Update compliance documentation and regularly train staff in accordance with current license requirements
Taxation for holders of a crypto license in the Philippines
Taxation is an important aspect for all companies obtaining a Philippines or cryptocurrency license Philippines.
The Philippine tax regime applies to both domestic and foreign companies and governs all legal entities licensed to provide digital asset services.
Regardless of whether the authorization is granted for exchange or covers other types of cryptocurrency, virtual asset, or trading operations, the company must comply with the country’s tax laws.
Key tax features for licensed companies
| Type of tax | Standard rate/requirement | Notes |
| Corporate income tax | 25% (standard) / 20% for SMEs | Applies to net taxable income for all Philippine-licensed companies |
| VAT | 12% (standard) | May apply to certain crypto services and licensed cryptocurrency exchange services |
| Withholding tax | 10–15% (dividends, interest, royalties) | Subject to international tax treaties |
| Personal income tax | Up to 35% (graduated) | For employees, management, and directors |
| Capital gains tax | 15% (on shares not traded on a stock trading) | Generally not applied to routine cryptocurrency transactions |
| Stamp duty | PHP 1.50 per PHP 200 transaction value | May apply to financial instruments but typically not to standard cryptocurrency transactions |
| PEZA/SEZ incentives | Possible tax holidays, reduced rates for fintech/IT projects | Not automatically applied to cryptocurrencies; may apply in certain economic zones |
Tax planning and compliance
- All companies holding a cryptocurrency license are required to register with the Bureau of Internal Revenue (BIR) and obtain a Tax Identification Number (TIN).
- There are a number of ongoing tax compliance obligations, including timely filing of quarterly and annual tax returns, as well as maintaining proper accounting records.
- Companies with a cryptocurrency authorization may be subject to tax audits, especially if they engage in high transaction volumes or cross-border activities.
- As a rule, these companies are subject to standard tax rules, without special cryptocurrency taxes.
- Foreign companies may obtain tax advantages under a double taxation avoidance agreement between the Philippines and their jurisdiction of incorporation, particularly with respect to withholding tax obligations.
Key tax rates
| Type of tax | Standard rate |
| Corporate income tax | 25% (20% for SMEs) |
| VAT | 12% |
| Withholding tax | 10–15% |
| Capital gains tax | 15% |
| Personal income tax | Up to 35% |
Obtaining the license provides regulatory guarantees and market access, but also entails an obligation for ongoing tax compliance.
Professional tax planning must be an integral part of the strategy of any organization holding a license in the field of cryptocurrencies and digital assets.
FAQ
1. What is the Philippine crypto license and who issues it?
The crypto license Philippines (also VCE or VASP) is issued by the Bangko Sentral ng Pilipinas (BSP) and grants the right to legally provide cryptocurrency services, including trading, wallets, and more.
2. What types of activities does the license cover?
Crypto-to-fiat and crypto-to-crypto trading, trading platforms, custodial and wallet services, payment processing, remittances, OTC operations, and ICOs (subject to BSP approval).
3. What is the minimum share capital required?
For VASPs applying for a crypto exchange license: PHP 50 million (approximately USD 900,000).
4. Is an office and local staff required?
Yes, a physical office in the Philippines and local staff are required – a compliance officer, MLRO, and operational personnel.
5. Can foreign investors own 100% of a crypto company?
Yes, there are no foreign ownership restrictions, but one of the directors must be a Philippine resident.
6. What are the compliance requirements?
You must have AML/KYC policies, transaction monitoring, annual audits, IT and cybersecurity reporting, and regular BSP reports.
7. How is crypto company profit taxed?
General corporate tax rates apply – 25% (or 20% for SMEs), 12% VAT, and withholding tax on dividends and interest. There is no separate crypto capital gains tax.
8. Does the authorization allow international operations?
The license is recognized within the Philippines but enhances reputation, eases bank access, and helps meet requirements in APAC countries. Additional licenses may be required for international activities.
9. What happens if you operate without a license?
Operating without a proper authorization is illegal under RA 9856, leading to fines, criminal liability, business closure, and blocking by financial institutions.
