BSP Prohibits Banks From Transacting With Unregistered Crypto Firms
The Bangko Sentral ng Pilipinas released updated guidance on March 30 that prohibits banks and financial institutions from transacting with unregistered crypto firms, blocking Filipino retail customers from accessing offshore exchanges without local BSP or SEC registration.
Key Takeaway
Philippine banks must cut off unregistered crypto firms or face penalties under new BSP compliance rules.
BSP-supervised financial institutions must now verify that every crypto partner holds proper licenses from the BSP, the Securities and Exchange Commission, or foreign regulators before conducting any transactions.
The new memorandum replaces BSP Memorandum No. M-2019-021 and blocks Filipino retail customers from directly accessing offshore virtual asset service providers that lack local registration. Banks must conduct comprehensive risk assessments covering money laundering, terrorism financing, and proliferation financing before onboarding any VASP counterparty.
Financial institutions need to screen for adverse media, verify regulatory registrations with the BSP, SEC, Anti-Money Laundering Council or foreign authorities, and assess compliance with Financial Action Task Force Recommendation 16 on payment transparency. The guidance mandates ongoing transaction monitoring systems that detect suspicious virtual asset activity, periodic counterparty information updates, and sanction screening. Enhanced due diligence applies when warranted, with strengthened monitoring for large or unusual transfers involving offshore crypto exchanges.
BSP said institutions must maintain clear policies for terminating relationships when material non-compliance surfaces. Violations of the Manual of Regulations for Banks and Manual of Regulations for Non-Bank Financial Institutions may result in sanctions and penalties. The implementation aligns with each institution's Money Laundering and Terrorist Financing Prevention Program and must include cybersecurity and anti-fraud safeguards per FATF Recommendation 15, effective immediately as of March 30, 2026.
🇵🇭 Filipino Impact
Filipino users of unlicensed offshore exchanges like Binance now face account access cuts if their local banks comply with the new BSP guidance. Only BSP-licensed VASPs and SEC-registered CASPs — including PDAX and Coins.ph — will maintain banking relationships for peso on-ramps and off-ramps. Traders using unauthorized platforms may need to move funds to compliant exchanges or risk losing peso conversion access entirely.
This article was written based on reporting from Elegal.
