Until recently, any crypto-currencies were not listed on these islands, but in light of the rapid development of the crypto-industry around the world, now this jurisdiction has become one of the most promising and popular places for obtaining a crypto-license. Below we will look at the main aspects of crypto-regulation and the procedure for obtaining this permission in the Philippines in 2024.
Our team is specialized experts in the field of establishing and licensing commercial structures. We work in hundreds of business-areas, applying our knowledge and skills to achieve the most effective results for our clients. We are ready to offer assistance in obtaining EMI-licenses, Forex, PI/SPI and other licenses.
Cryptocurrency regulation in the Phillippines and the benefits of crypto-authorization in this jurisdiction
Since 2017, there has been a legislative framework in this territory that regulates virtual assets. Adjustments are also constantly being made to this database to increase the range and scope of licensing law and regulation as such. For those wishing to obtain a digital money exchange service provider permit in this jurisdiction, the application process has also been simplified and a more favorable and efficient environment has been created. Below we will look at exactly what privileges await a crypto-service provider who receives this type of permit in the Philippines.
- This state has a fast pace of development, and the main area that is emphasized is the financial and technical sector.
- The authority of a VFA enterprise will increase significantly.
- Favorable tax regime.
- The firm will be able to open fiat accounts and payment cards for its clients, which in turn will give the business-project a chance to become an issuer of electronic money.
- An entrepreneur can be completely confident in the reliability of the regulatory and legal system.
BSP is the Central Bank of the Phillippines. He played a major role in the recognition of crypto-currency in the Philippines. This bank is a key authority in regulating monetary policy. In 2017, this institution issued a special Circular 944, which recognized crypto-currencies in these territories, and also obliged all digital asset exchanges to launch and comply with all rules for combating the illegal legalization of capital and financial support for terrorist operations.
In 2021, the Central Bank of the Philippines released a new document listing regulations for all virtual asset service providers (VASPs), which also includes guidelines and conditions for obtaining a crypto-license in this jurisdiction. According to information that was publicly disclosed, as of early 2023, there are more than 19 VASPs registered on the Philippine Digital Asset Exchange, providing their consumers with a wide range of services, from crypto-asset transactions to capital control.
The SEC is a commission that is the supervisory authority for the securities market and crypto-exchanges. This body exists to audit all exchanges and monitor the proper state of related activities and documentation. The Commission has repeatedly publicly stated that cooperation with unlicensed exchanges is unsafe.
At the beginning of 2023, this body, in order to protect exchange clients, presented a set of rules that increased its supervisory capabilities. Now this commission also controls “tokenized securities” and other banking products based on the blockchain.
Philippines crypto-exchange license
In this jurisdiction, after receiving a crypto-license, the firm is given the opportunity to carry out the following activities.
- Exchange of digital resources for fiat currencies.
- Trading digital assets.
- Transfer of digital financial resources.
- Management and storage of digital capital.
With the entry into force of new rules for licensing crypto-organizations, a law was also passed in 2021, according to which all companies carrying out activities related to the exchange of crypto-assets were required to get a new permit in order to avoid the introduction of certain restrictions in relation to them.
If you intend to get a permit in this jurisdiction, the easiest way is to follow all the recommendations of the Central Bank of the Philippines to minimize risks, meet all financial conditions and prepare capital to pay registration and annual fees. It is also important to study the minimum capital requirement range and understand if you have sufficient finances to meet these norms for your type of business. Next, you will need to ensure the cybersecurity of your organization and carry out customer verification, as these measures must be followed by all crypto-firms.
Our lawyers will take care of all the most complex aspects of licensing. We are also ready to offer you ready-made gambling licenses in Romania, Malta, Forex licenses in Estonia and other commercial permits.
It is also important to be prepared to present your business-plan, check the effectiveness of risk management, appoint an employee who will be responsible for the fight against illegal legalization of capital, monitor the implementation of internal and audit controls and, most importantly, the absence of any violations of the legislation of the state in which you want to obtain a permit.
Crypto-license requirement list in the Philippines
If you want to quickly get a permit and launch digital assets business in Phillippines, then you need to study the law and take into account the following points:
- compliance with all legal and regulatory requirements;
- presence of 1 director with residency;
- confirmation of the legality of the source of capital;
- availability of documentary evidence of registration of a company providing crypto-services;
- compliance with all standards and regulatory principles of the Main Bank of the Philippines, which relate to outsourcing, risk control, IT security, anti-money laundering and consumer protection.
The financial norms to register VASP in Phillippines are listed below.
- Down payment of $2,000.
- Annual maintenance is about $6,000 per year.
- Availability of a minimum capital from $200,000 to $1,000,000, depending on the range of services of the firm.
The above standards apply to reporting and control.
- Your firm is required to develop and implement specific internal control systems.
- The firm must comply with all points prescribed by law and hire qualified managers who will monitor the performance of all functions.
- The company is required to provide every year and every three months reports on transactions made and on the capital of the organization.
The organization is required to closely monitor and verify every transaction that is suspicious or exceeds the minimum value of $100. For transactions over $1,100 there is also a separate protocol that must be followed, detailing both parties making the exchange.
To protect user rights and maintain data security, companies conducting crypto-transactions are required to do next-mentioned.
- Notify all consumers about transaction rules, risks and fees.
- Have dedicated channels for filing complaints and resolving disputes.
- Follow the list of cybersecurity points for wallets.
To maintain operational integrity, the following is required.
- Careful selection of certified partners and accredited electronic capital.
- Guaranteeing the mobility of fiat transactions and regulating the separate accounting of client and own digital capital.
- Compliance with regulatory norms for outsourcing services.
- Effectively manage outsourcing and compliance risks.
Procedure for obtaining a crypto exchange license in Phillippines
In the Philippines there is a certain system, following which it is quite easy to get a permit. This concept includes three stages with different conditions.
- The first phase is obtaining approval from the Central Bank of the Philippines.
At this stage, your organization needs to acquire the right to operate as an enterprise that engages in crypto-transactions. You need to write an application letter and attach all the necessary documents to it. This is followed by drawing up a business-plan, which will detail the purpose, structure, services, capital, market, work process, fees and IT mechanisms.
The next step in this phase is collecting all the data about the company’s employees, obtaining financial confirmation. Approval at this phase of firm legalization takes, on average, 20 days.
- The second phase is registration with the Securities and Exchange Committee.
At this point, your organization needs to wait for letters stating that there are no claims against it and it is eligible to register as a VASP with the SEC. After receiving this notification, you will also receive a message that you need to register your firm, an application with the address of the Central Bank of the Philippines and approval of VASP standards.
- The third phase is competency certification.
You need to complete the VASP approval process. At this stage you should have:
- a notarized statement;
- all constituent documents;
- documents confirming the company’s readiness in terms of AML procedures;
- a document confirming that you have paid all registration fees.
If all parameters are correctly followed, you will become the owner of crypto license in Phillippines.
How much does a crypto-license cost in the Philippines?
The price of such a permit is calculated individually in each case, since it depends on many third-party factors. Our specialists will provide you with an approximate amount before starting cooperation, ensuring maximum optimization for your budget.
Our lawyers will become your reliable allies on the path of your commercial development. We also have attractive offers for the sale of banking licenses in Comoros, Europe, the USA and around the world. Contact us right now in any way convenient for you.