Crypto news

The Central Bank of the Philippines has officially approved a new regulatory act governing the digital asset listing procedure for licensed Virtual Asset Service Providers (VASPs). This move aims to strengthen oversight of the country's rapidly growing cryptocurrency market and protect investor interests.

A key point of the document is a direct ban on exchanges and platforms adding and supporting assets focused on enhancing transaction privacy. This refers to so-called "privacy coins," which by their architecture make tracking the movement of funds difficult. This decision reflects the global regulatory trend of combating money laundering and the financing of illegal activities.

The new regulation introduces a mandatory multi-factor assessment for each asset before its listing. Service providers are required to evaluate coins and tokens based on six key criteria:

1. Information about the issuer and project team.
2. Market maturity and asset trading history.
3. Use cases and real-world utility.
4. Code transparency and smart contract security.
5. Liquidity and reserve adequacy.
6. Full compliance with current Philippine legislation.

Furthermore, the regulator requires platforms to conduct continuous monitoring of already listed assets. Exchanges must pre-develop and document clear conditions for suspending trading or complete delisting in case of violations or changes in market conditions. This means simply "forgetting" about a problematic token is no longer possible — its status must be constantly monitored.

From my perspective, this decision is a logical continuation of the "dual control" policy being implemented by many Asian regulators. The Philippines, aiming to become a regional hub for legitimate crypto business, is forced to balance between innovation and the strict requirements of the FATF. The ban on privacy coins may deter some users, but in the long term, it will increase the trust of institutional investors in the local market.