Country overview

The Philippines remains one of the most crypto-friendly countries in Southeast Asia, along with Taiwan, Japan, and South Korea. Unlike other countries in the region, such as Thailand and China, there is no ban on crypto payments. In January 2021, a new regulation for cryptocurrencies was adopted in the country.

The Philippines has a high danger security level according to our rating. Jurisdiction has 57.4 points (from 100) for safety level in Numbeo crime rating (1). Homicide level (2) is 4.3 per 100,000 inhabitants a year. Level of firearm-related death (3) 7.72 per 100,000 inhabitants a year.

According to local media, crypto payments in the country are legal (4). However, the BSP does not recognize Bitcoin and other “virtual currencies” as currency. It has been reported (5), that less than 2 percent of all known transactions in the Philippines are conducted using cryptocurrency but this does not account for transactions conducted in the informal economy.

No regulation/No data.

The Philippines has a comprehensive crypto regulation framework that allows #cryptotocrypto and #cryptotofiat exchange.

The Bangko Sentral of Pilipinas (BSP) is the primary regulator that registers VASPs. Another regulator is the local SEC, which influences the regulation of crypto-related funds and securities. Also, there are two other kinds of crypto operations licenses:

Offshore Virtual Currency Exchange (OVCE) Principal License

OVCE Regular license

VASPs registered (6) in The Philippines need to get “Certificate of Authority” to operate as a Money Service Business. According to Notabene VASP also shall (7) adhere to the registration procedures under Appendix N-7 and submit the Application for Registration and Notarized Deeds of Undertaking (Appendices N-8 and N-9) to the Bangko Sentral through the appropriate supervising department of the Bangko Sentral.

Bangko Sentral ng Pilipinas has registered 18 crypto entities in the list of VASPs(8).

In late January (2022), the Union Bank of the Philippines announced plans to offer cryptocurrency trading and custodial services (9). The new investment and trading feature launched in collaboration with Swiss crypto technology firm Metaco, with UnionBank going live on Metaco’s (10) digital asset platform Harmonize.

Grant Thornton's guide (11) states, “In the Philippines, however, the BIR has not yet issued specific guidelines on the classification of cryptocurrencies and the taxation of income earned from such."

According to local tax expert Gerard Caprizo's video tutorial (12), crypto gains (like professional trading) in the Philippines are subject to PIT from 20% to 35%.

At the same time, according to Grand Thornton, those considered non-resident aliens not engaged in trade or business (NRANETBs) in the Philippines whose income is subject to 25% income tax based on gross income.

1)Crime Index by Country 2023 Mid-Year

2)List of countries by intentional homicide rate

3)List of countries by firearm-related death rate

4 and 5)The Diplomat. How Terrorists Use Cryptocurrency in Southeast Asia. Article

6)CIRCULAR NO. 1108. PDF-file

7) Nota Bene. Crypto Travel Rule Regulations in the Philippines by the Central Bank of the Philippines. Article

8)List of Virtual Asset Service Providers (VASP). As of 31 July 2023. Source: TRISD Database. PDF-file

9)Bloomberg. Crypto Enthusiasm Prompts Philippine Bank to Launch Trading. Article

10)Cointelegraph. Union Bank of the Philippines selects Metaco and IBM to facilitate digital asset custody operations. Article

11 and 16)Grant Thronton. Taxing income from cryptocurrencies. Article

12)Tax on cryptocurrency in the Philippines. YouTube

12¹)Overview. PWC

13)Philippines. Corporate - Taxes on corporate income. PWC

14)Cryptocurrency accounting and taxation. PWC

15)Philippines. Corporate - Other taxes. PWC