Is crypto legal in Philippines?

“Entities involved in the conduct of one or more of the following activities: exchange between VAs and fiat currencies or one or more forms of VAs; transfer of VAs; and safekeeping and/or administration of VAs ... fall within the definition of VASP and are required to secure a COA from the BSP.”

“A VASP shall secure a COA to operate as an MSB, pursuant to and upon compliance with the requirements under Section 901-N.”

“The BSP is studying the appropriate regulatory framework for Philippine‑peso referenced stablecoins and has issued draft guidelines proposing prudential and consumer protection requirements for issuers of such stablecoins.”

“Gains arising from the sale or exchange of cryptocurrency are subject to income tax under the National Internal Revenue Code. When the taxpayer is engaged in the regular conduct of trade or business involving cryptocurrency, the gains shall be treated as business income; otherwise, gains may be treated as capital gains or other income, as the case may be.”

“The rise of decentralized finance (DeFi) and other virtual asset service arrangements is being closely studied by the BSP to determine appropriate regulatory and supervisory responses.”

“For purposes of this Circular, virtual assets shall include cryptocurrencies, non-fungible tokens (NFTs), and other digital representations of value that can be traded or transferred electronically. Income derived from the sale or exchange of virtual assets shall be subject to income tax, and when applicable, to value-added tax or percentage tax.”

“The Commission has issued numerous advisories against entities soliciting investments in cryptocurrencies and digital asset trading without the necessary licence.”