The Bangko Sentral ng Pilipinas (BSP) has issued Memorandum M-2026-023, ushering in a strict new regulatory framework for virtual asset service providers (VASPs) that includes a ban on privacy-focused cryptocurrencies. The move represents one of Southeast Asia’s most aggressive crypto policy shifts this year.
Under the new rules, licensed exchanges and brokers must enhance due diligence, adhere to tighter anti-money-laundering (AML) protocols, and meet elevated registration and reporting standards. However, the most consequential provision is the compulsory delisting of tokens designed to obscure transaction details, specifically naming Monero and Zcash. The BSP views these anonymity-enhanced assets as incompatible with AML and counter-terrorism financing obligations because they shield sender, receiver, and transaction amounts from public view.
Exchanges operating under BSP oversight will be required to remove privacy coins within a set compliance window, cutting off trading access for Filipino users on regulated platforms. While the restriction does not extend to self-custody or peer-to-peer transfers outside supervised venues, it effectively eliminates orderly market access for these assets in the Philippines. Traders holding such tokens on local platforms will likely need to withdraw or convert their holdings before the delisting deadlines.
The move aligns with a global regulatory trend toward full transaction traceability, mirroring identity-verification provisions in proposed frameworks like the U.S. GENIUS Act. Smaller VASPs may face heightened operational costs, potentially leading to market consolidation—a pattern observed in other jurisdictions that have tightened crypto oversight.
While self-custody remains unaffected, the ban signals that regulated crypto markets in Southeast Asia are converging around zero tolerance for anonymity-enhanced tokens, pushing the industry toward compliance-first models. The immediate impact falls on Monero (XMR) and Zcash (ZEC), whose markets in the Philippines will cease to exist on licensed venues.
