The Philippine regulator tightens rules for listing crypto assets: privacy coins are banned.
The Central Bank of the Philippines (Bangko Sentral ng Pilipinas) has officially approved an updated cryptocurrency listing regulation for licensed virtual asset service providers. This step aims to strengthen control over the country's digital asset market and protect investor interests.
The key change is a direct ban on adding and supporting privacy-focused crypto assets. This refers to so-called "privacy coins" that use advanced transaction anonymization technologies, such as ring signatures or zero-knowledge proofs. For the regulator, such tools create insurmountable obstacles for compliance with anti-money laundering (AML) and counter-terrorism financing (CFT) requirements.
Six-factor verification before listing
In addition to the ban on privacy assets, the new rules introduce a mandatory due diligence procedure for all coins and tokens before they are added to trading platforms. Providers are now required to check each asset in the following six areas:
Data on the issuer and project team. The platform must verify the transparency and reputation of the asset's creators.
Market maturity. Assessment of trading history, market capitalization, and market depth.
Use cases. Analysis of the token's practical applicability and real-world value.
Transparency and security. Verification of code, smart contract audits, and vulnerabilities.
Liquidity and reserves. Assessment of the ability to ensure stable trading without manipulation.
Legal compliance. Ensuring the asset does not violate local legislation, including securities regulations.
Additionally, the regulator requires platforms to conduct continuous monitoring of already listed assets. Each platform must predefine clear criteria for suspending trading or delisting, allowing for a prompt response to changes in market conditions or regulatory risks.
In my opinion, this decision is a logical continuation of the global trend towards tightening cryptocurrency market regulation in the Asia-Pacific region. The Philippines, striving to maintain a balance between innovation and security, is essentially copying the approaches of more mature jurisdictions such as Japan and Singapore. However, a complete ban on privacy coins could push some users towards unregulated platforms, thereby reducing the effectiveness of control. Nevertheless, for institutional players and long-term investors, such rules are a clear signal of market maturity and reduced risks.