BSP requires deeper vetting of digi assets

MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) has directed virtual asset service providers (VASP) to conduct more rigorous reviews before listing digital tokens, in an effort to better protect consumers and limit risks to the financial system.

Memorandum No. M-2026-023 approved on June 5 sought to clarify regulatory expectations for VASPs in conducting due diligence reviews of coins and tokens offered to their customers.

READ: Beef up defenses vs crypto, virtual asset risks, financial firms told

That said, the BSP is requiring exchanges to assess a token’s issuer, market track record, utility, security features, liquidity and regulatory compliance.

At present, there are 11 registered VASPs in the country that enable people to buy, sell, trade or store virtual assets.

The term “virtual asset” refers to any digital representation of value that can be digitally traded, transferred or used for payment. It does not include the digital representation of fiat currencies.

Under the new memo, the BSP wants to protect consumers and reduce risks in the virtual market by making sure exchanges carefully review a token before allowing Filipinos to buy or trade it. Before listing a coin or token, exchanges should assess who the issuer is as well as the market capitalization and maturity of the digital token.

VASPs should also understand the real purpose of the token, its users, as well as the asset’s benefits and risks. Such information, the BSP said, may help customers in their buying decisions.

Regulated entities must also examine the technology behind the tokens and whether it has been independently audited. INQ