Philippines Bans Privacy Coins, Targets Unregistered Crypto Exchanges

The crackdown also raises the bar for new market entrants. Any platform seeking to operate in the Philippines must register with the central bank and comply with anti-money laundering rules. The central bank first introduced a licensing regime for crypto exchanges in 2017 and has since granted licenses to a handful of platforms, including Coins.ph and PDAX. The new restrictions apply to all licensed VASPs, and the central bank said it will conduct regular audits to ensure compliance.

The SEC's enforcement push targets a different set of players. Many unregistered operators run through social media and messaging apps, often claiming high returns. The SEC has issued cease-and-desist orders against several entities in recent months. The new measures give the agency broader authority to pursue these operators, including the ability to refer cases for criminal prosecution.

The focus on privacy coins is tied to the Philippines' large remittance market. Regulators said privacy tokens are sometimes used to bypass capital controls or hide cross-border flows, and that the risk of misuse outweighs any legitimate use case.

The tighter rules could slow crypto adoption in a country that has ranked high in global adoption indexes, driven by remittances and gaming. Some activity may shift to decentralized exchanges or underground channels. The central bank argues that a licensed environment protects consumers and reduces fraud.

The measures are effective immediately, the central bank said. No grace period was provided for exchanges to delist affected tokens.