REGULATION | Philippines Bans Privacy Coins, Tightens Crypto Listing Standards

The Philippines has barred licensed cryptocurrency platforms from listing privacy-focused digital assets as part of a sweeping overhaul of its virtual asset regulations marking one of Southeast Asia’s toughest moves against anonymity-enhancing cryptocurrencies.

The Bangko Sentral ng Pilipinas (BSP), which is the Central Bank of The Philippines, issued Memorandum No. M-2026-023 requiring all licensed virtual asset service providers (VASPs) to delist privacy coins while adopting stricter standards for screening, monitoring, and removing digital assets offered to customers. The new rules are intended to strengthen anti-money laundering controls and improve consumer protection.

Beyond banning privacy coins, the framework introduces more rigorous listing requirements for all cryptocurrencies. Exchanges must now conduct enhanced due diligence on

• a token’s security,
• liquidity,
• market integrity,
• legal compliance, and
• issuer credibility

before listing it.

Asset-backed and fiat-backed tokens, including stablecoins, will also face lifecycle assessments evaluating their issuance, reserves and redemption mechanisms.

The BSP said the measures align the country’s regulatory framework with international anti-money laundering standards promoted by the Financial Action Task Force (FATF) which has repeatedly flagged privacy-enhancing cryptocurrencies as posing elevated financial crime risks.

The latest rules raise compliance requirements for licensed exchanges operating in the Philippines increasing the cost and scrutiny associated with listing new digital assets while limiting the availability of anonymity-focused tokens on regulated platforms. The memorandum does not prohibit individuals from holding privacy coins in self-custodied wallets but effectively removes them from BSP-regulated trading venues.

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