SEC Crypto Licensing Checker
- Paid-up capital: PHP 100 million (cash only)
- Domestic corporation: Must be incorporated under Philippine law
- Physical office: Real, staffed address required
- AML/KYC: Approved systems and regular reporting
- Disclosure: Marketing plans must be filed 30 days prior
Enter platform details and click "Check Licensing Eligibility" to see results.
- Monthly financial reports required
- Fund segregation rules apply
- Quarterly SARs to AMLC
- Annual independent audit
- Penalties up to ₱10 million per breach
Quick Take
- All crypto platforms serving Filipino users must register as a Crypto Asset Service Provider (CASP) with the Securities and Exchange Commission (SEC).
- Minimum paid‑up capital: PHP 100million (≈$1.8M USD) - cash only, crypto assets don’t count.
- Physical office in the Philippines and a domestic corporation are mandatory.
- Compliance includes AML/KYC systems, monthly financial reports, and strict fund‑segregation rules.
- Violations trigger fines from ₱50,000 up to ₱10million per breach, plus daily penalties.
What is a Crypto Asset Service Provider (CASP) and Why Does the SEC Care?
In May2025 the Philippine Securities and Exchange Commission (SEC) issued Memorandum Circular No.04‑2025 and Memorandum Circular No.05‑2025. Together they created the region’s most detailed crypto framework. The SEC calls any business that: (a) facilitates buying, selling, or trading crypto‑assets; (b) offers custodial wallets; or (c) markets token sales a Crypto Asset Service Provider (CASP). By labeling them as securities‑related entities, the regulator can enforce investor‑protection rules, AML safeguards, and market‑integrity standards.
The move came after crypto adoption in the Philippines surged to a projected 10.49% penetration in 2025 - roughly 12.8million users - and crypto‑related revenue topped ₱1.1billion. The SEC’s goal is simple: keep that growth safe.
Key Licensing Thresholds
Five hard numbers define whether a platform can operate legally:
- Paid‑up capital: PHP100million (about US$1.8million) must be fully paid and sit in a local bank. The amount excludes any crypto‑assets the firm holds.
- Domestic corporation: The CASP must incorporate under Philippine law, not just register a foreign branch.
- Physical office: A real, staffed address is required - virtual offices or shared coworking spaces are not accepted for licensing.
- AML/KYC infrastructure: The platform must integrate systems approved by the Anti‑Money Laundering Council (AMLC) and submit periodic audit reports.
- Disclosure & marketing plan: A prospectus‑style document must be filed 30days before any public offer.
Missing any one of these triggers an automatic denial or, if already operating, a fine.
Step‑by‑Step Application Process
Here’s how a foreign exchange can become a licensed CASP in the Philippines:
- Form a Philippine corporation - typically a stock corporation with at least five local directors.
- Open a local bank account and deposit the PHP100million capital.
- Secure a lease for a physical office space that meets the SEC’s minimum square‑footage requirement (about 30sqm).
- Develop an AML/KYC policy that aligns with AMLC guidelines. Include risk‑scoring algorithms, transaction monitoring, and customer‑on‑boarding SOPs.
- Prepare the registration dossier for the PhiliFintech Innovation Office. The packet must contain:
- Corporate charter and board resolution authorizing the crypto business.
- Business rules - how the platform will handle deposits, withdrawals, and order matching.
- Detailed AML/KYC flowcharts and a data‑privacy impact assessment.
- Risk‑control mechanisms - limits per transaction, cold‑wallet segregation, and incident‑response plan.
- Marketing and disclosure documents to be posted on the website 30days before any token sale.
- Submit the dossier with a filing fee calculated at 0.5% of projected annual gross revenue (minimum ₱500,000).
- Allow a 30‑day review period. The SEC may request clarifications or additional documentation.
- Once approved, receive the CASP license and a unique registration number to display on the platform’s footer.
After licensing, the CASP must file monthly financial statements, AML reports, and any material changes to its business rules.
Ongoing Compliance Obligations
Licensing is just the first hurdle. The SEC expects continuous vigilance:
- AML reporting: Quarterly suspicious‑activity reports (SARs) go to the AMLC and the SEC.
- Fund segregation: Customer deposits must be kept in a separate, segregated account - the “cold wallet” - that cannot be tapped for operating expenses.
- Financial disclosures: Monthly profit‑and‑loss statements, balance sheets, and a breakdown of gross revenue by service line.
- Marketing oversight: Any new crypto‑asset offering requires a fresh disclosure filing 30days before promotion. No forward‑looking price guarantees are allowed unless specifically permitted under Section5.3 of MC4‑2025.
- Audits: An independent auditor accredited by the SEC must conduct an annual audit of AML/KYC compliance and fund‑segregation practices.
Failure to meet any of these triggers a penalty ranging from ₱50,000 to ₱10million per breach, plus a daily ₱10,000 fine if the violation persists.
Enforcement Trends and Real‑World Penalties
Since the rules took effect on July52025, the SEC has been aggressive. On August12025, it publicly named ten exchanges - including OKX, Bybit, and Kraken - for operating without a CASP license.
The most high‑profile case remains the 2024 “Binance block”. Philippine authorities gave Binance users 90days to withdraw funds before the platform’s website was taken offline. The SEC later confirmed that the move complied with the new licensing rules, even though Binance never filed a CASP application.
Penalties have been steep: a former OKX office in Manila was fined ₱5million for missing AML filings, and Bybit received a ₱2million fine for advertising a token sale without the required 30‑day disclosure.
Market Impact - What Operators Need to Know
The capital barrier (PHP100million) is a double‑edged sword. Large, well‑funded exchanges can absorb the cost and turn the license into a market advantage - they appear “SEC‑approved” and attract risk‑averse Filipino investors. Smaller players, especially niche or DeFi‑focused platforms, struggle to meet the threshold, leading many to either partner with a local licensed entity or exit the market.
On the upside, the framework has boosted consumer confidence. A recent survey showed that 68% of Filipino crypto users feel “more secure” after the SEC’s crackdown, and daily trading volume on licensed platforms grew 4.59% YoY despite the stricter rules.
For overseas exchanges eyeing the Philippines, the strategic choices are:
- Set up a local subsidiary and meet the capital/office requirements - best for long‑term growth.
- Partner with an existing licensed CASP - share technology while leveraging the partner’s license.
- Focus on non‑Philippine markets - avoid the compliance cost but lose access to a fast‑growing user base.
Analysts expect the Philippines to become a regional hub for compliant crypto activity, potentially influencing neighboring countries to adopt similar frameworks.
License vs. No License - Quick Comparison
| Aspect | Licensed (CASP) | Unlicensed |
|---|---|---|
| Capital Requirement | PHP100million paid‑up capital | None (but illegal) |
| Physical Presence | Mandatory office & local corporation | Often remote or offshore only |
| AML/KYC Compliance | Regular reporting to AMLC & SEC | Typically weak or absent |
| Marketing Disclosure | 30‑day pre‑offer filing, no price guarantees | No filing, free‑wheeling promos |
| Fund Segregation | Customer funds kept separate from operating accounts | Often pooled, higher loss risk |
| Penalties | Fines up to ₱10million per breach, daily penalties | Potential shutdown, asset freeze, legal action |
| Market Perception | Seen as trustworthy, can attract institutional investors | Viewed as risky, may deter serious users |
Frequently Asked Questions
Do I need a CASP license if I only offer a wallet service?
Yes. The 2025 SEC rules define a wallet provider as a CASP because it holds or transfers crypto‑assets on behalf of users. The same capital and office requirements apply.
Can a foreign exchange operate through a local partner without setting up its own office?
Partnering is allowed, but the local partner must hold the CASP license. The foreign brand can use the partner’s infrastructure, yet it still bears ultimate responsibility for AML compliance.
What happens if I launch a token sale without the 30‑day disclosure?
The SEC will issue an immediate cease‑and‑desist order, and the platform can be fined up to ₱10million per violation. Continued activity after the order incurs the daily ₱10,000 penalty.
Is the PHP100million capital a one‑time requirement?
It’s a minimum paid‑up capital that must remain fully funded for the life of the license. If the capital falls below the threshold, the SEC can suspend or revoke the license.
How often does the SEC audit a licensed CASP?
Annual audits are mandatory, but the SEC may conduct surprise inspections or request additional documentation at any time, especially after a major security incident.
Understanding the crypto licensing Philippines landscape is not optional any more - it’s the price of doing business in one of Southeast Asia’s fastest‑growing digital‑asset markets. Whether you’re a global exchange, a wallet startup, or a token issuer, meeting the SEC’s CASP standards will give you legal certainty, investor trust, and a clear path to scale.
Prince Chaudhary
May 23, 2025 AT 17:07The SEC’s new rules definitely raise the bar for anyone wanting to operate in the Philippines. It’s a clear signal that regulators are taking crypto seriously, which should protect retail investors. Companies that already have the capital and local presence will find the licensing process straightforward.
John Kinh
May 31, 2025 AT 17:00Sure, because nobody ever wanted clear rules in the first place. 🙃
Debby Haime
June 8, 2025 AT 19:26If you’re looking at the capital requirement, think of it as a safety net for users – you can’t just skim off deposits. The mandatory physical office also helps authorities verify who’s actually running the platform. And the AML/KYC reporting ensures suspicious activity gets flagged early. All of this together builds trust, which is crucial for mass adoption.
Courtney Winq-Microblading
June 16, 2025 AT 21:53Reading the SEC’s checklist feels like a philosophical litmus test for responsibility. It asks whether a business is willing to expose itself to oversight rather than hide behind anonymity. In a region where crypto enthusiasm runs high, that kind of transparency could be the difference between hype and sustainable growth.
katie littlewood
June 25, 2025 AT 00:20The Philippine regulatory framework, introduced in mid‑2025, represents one of the most comprehensive crypto statutes in Southeast Asia. By demanding a PHP 100 million paid‑up capital, the SEC is effectively separating serious players from hobbyist projects. That capital ceiling forces startups to either raise substantial funds early or partner with an already‑licensed local entity, which reshapes the market dynamics. The requirement for a tangible office eliminates the “virtual‑only” model that many offshore exchanges have relied upon, bringing operational transparency to the fore. Domestic incorporation ensures that the corporate governance falls under Philippine law, giving regulators jurisdiction over board composition and shareholder rights. AML/KYC compliance, with mandated reporting to the AMLC, aligns the Philippines with global anti‑money‑laundering standards, reducing the risk of the jurisdiction becoming a laundering haven. The monthly financial statements and quarterly SARs create a continuous audit trail that can be leveraged by investors to assess financial health. Fund segregation, demanding a cold‑wallet separate from operating accounts, protects user assets from being commingled with company cash flow, which has been a red flag in numerous exchange failures worldwide. The 30‑day pre‑offer disclosure rule curtails last‑minute token promotions that could manipulate market sentiment without oversight. Penalties soaring up to ₱10 million per breach, plus daily fines, act as a strong deterrent against non‑compliance. For established exchanges with deep pockets, the licensing cost becomes a marketing badge – “SEC‑approved” – that can attract more risk‑averse Filipino investors. Conversely, smaller DeFi projects might struggle to meet the capital threshold, pushing them towards either merging with a licensed entity or exiting the Philippine market altogether. The net effect is a consolidation of the crypto ecosystem toward more robust, well‑funded players, which could improve overall market stability. However, the high entry barrier also risks stifling innovation, especially for community‑driven token initiatives that lack massive capital backing. In the long run, the balance between investor protection and encouraging nascent projects will determine whether the Philippines becomes a regional fintech hub or merely a regulated enclave for the biggest global exchanges.
Jenae Lawler
July 3, 2025 AT 02:46While the exposition is thorough, it overstates the inevitability of market consolidation. The capital ceiling, though high, does not preclude innovative financing structures such as tokenized equity that could satisfy the requirement without compromising decentralization. Moreover, the insistence on a physical office discounts the viability of distributed teams that are the hallmark of many successful blockchain projects. A more nuanced approach would differentiate between custodial services and pure protocol layers, allowing lighter regulatory burdens for the latter. Nevertheless, the SEC’s intent to protect consumers remains commendable.
Chad Fraser
July 11, 2025 AT 05:13Hey folks, if you’re still on the fence about the new rules, think of them as a passport to credibility. Getting that license shows you can handle the regulatory rigor, which in turn opens doors to institutional partners. Start gathering the paperwork now – the sooner you file, the faster you’ll be able to market to the growing Filipino user base. Remember, compliance is a competitive edge, not a roadblock.
celester Johnson
July 19, 2025 AT 07:40Motivation aside, the reality is that many of these platforms will simply burn through the required capital and disappear, leaving users exposed. The SEC’s crackdown will expose those fragile operations faster than any optimistic pep talk. If a company can’t demonstrate a genuine commitment beyond hype, the license will be revoked without mercy. So, while positivity helps, it shouldn’t blind us to the systemic risk embedded in the current landscape.
Mark Camden
July 27, 2025 AT 10:06It is incumbent upon every participant in the Philippine crypto space to recognize that the SEC’s regulations are not optional suggestions but statutory imperatives. Any entity that disregards the PHP 100 million capital mandate demonstrates a reckless disregard for fiduciary responsibility. The requirement for a domestic corporation serves to anchor legal accountability within the jurisdiction, thereby preventing offshore evasion of Philippine law. Moreover, the mandatory AML/KYC framework aligns the Philippines with international anti‑money‑laundering conventions, which is essential for maintaining global financial integrity. Non‑compliance not only triggers severe monetary penalties but also damages the reputation of the entire ecosystem, eroding trust among retail investors. Therefore, adherence must be viewed as a foundational pillar of sustainable growth.
Evie View
August 4, 2025 AT 12:33Your lofty proclamation ignores the fact that many startups simply lack the resources to meet those lofty standards, forcing them out of the market before they can prove their innovation. The SEC’s heavy‑handed fines can be catastrophic for a fledgling team, turning visionary projects into cautionary tales. While accountability is vital, an inflexible regime can stifle the very creativity that drives the industry forward. We need a balanced approach that protects users without bankrupting innovators.
Jayne McCann
August 12, 2025 AT 15:00Honestly, I think the whole licensing thing is just a way for the government to grab more fees from crypto companies.
Richard Herman
August 20, 2025 AT 17:26I can see why you’d feel that way, but the primary goal of the SEC’s framework is to protect investors from fraud and operational risks, not to generate revenue. By imposing clear standards, the regulator aims to create a level playing field where legitimate businesses can thrive. It also aligns the Philippines with global best practices, which can attract foreign investment in the long run. While fees are part of the process, they’re intended to fund oversight activities rather than line bureaucrats’ pockets. A collaborative dialogue between regulators and industry can help fine‑tune the rules to balance protection and growth.
Parker Dixon
August 28, 2025 AT 19:53Here’s a quick cheat‑sheet for anyone starting the licensing journey 🚀: 1️⃣ Incorporate a domestic corporation with at least five local directors. 2️⃣ Open a local bank account and deposit the full PHP 100 million. 3️⃣ Secure a physical office that meets the 30 sqm minimum. 4️⃣ Build an AML/KYC system approved by the AMLC, complete with transaction monitoring. 5️⃣ Draft a 30‑day marketing disclosure and file it with the SEC before any token sale. 6️⃣ Submit the dossier to the PhiliFintech Innovation Office and pay the 0.5 % filing fee. Once approved, remember the ongoing obligations: monthly financials, quarterly SARs, annual audit, and strict fund segregation. Follow these steps and you’ll avoid the common pitfalls that have tripped up many newcomers.
Stefano Benny
September 5, 2025 AT 22:20While the cheat‑sheet is handy, it glosses over the nuanced compliance matrices that many firms stumble on, especially the interplay between AMLC reporting cycles and SEC audit windows 📊. Failing to synchronize those timelines can trigger cascading penalties, even if the primary capital and office criteria are met.
Bobby Ferew
September 14, 2025 AT 00:46In summary, the regulatory landscape is evolving, and anyone ignoring these requirements does so at their own peril.