Philippines Issues Stricter Crypto Listing Rules, Bans Privacy Coins

Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, issued stricter regulations for cryptocurrency exchanges on March 18, 2024, enhancing oversight of digital asset listings and operations. The new rules mandate that Virtual Asset Service Providers (VASPs) conduct thorough due diligence on digital assets before listing them, including assessing their underlying technology, use cases, and potential risks. A significant addition to the regulations is the explicit prohibition of privacy coins, such as Monero and Zcash, from being listed on Philippine exchanges. This move aims to bolster anti-money laundering (AML) and counter-terrorism financing (CTF) efforts by reducing the anonymity associated with these cryptocurrencies. The BSP stated that these enhanced measures are designed to protect consumers and maintain the integrity of the financial system. Exchanges are required to implement robust risk management frameworks and continuous monitoring of listed assets to ensure compliance. Failure to adhere to these new guidelines could result in penalties, including license suspension or revocation. The BSP's directive underscores a global trend towards increased regulatory scrutiny of the cryptocurrency market.