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The Bangko Sentral ng Pilipinas (BSP) reaffirmed its commitment to strengthen the country’s regulatory framework for virtual assets after the Financial Action Task Force (FATF) maintained the Philippines’ “Partially Compliant” rating under Recommendation 15 in its June 2025 Targeted Update on Implementation of the FATF Standards on Virtual Assets and Virtual Asset Service Providers (VASPs).
Commitment to FATF Compliance
The statement was issued in response to a BitPinas inquiry sent in July, following the release of the FATF’s Targeted Update on Implementation of the FATF Standards on Virtual Assets and VASPs in June 2025.
In a response sent on September 16, 2925, the BSP emphasized that the rating serves as a reminder that the Philippines’ removal from the FATF grey list in February was “not an end but part of a continuing task to safeguard the economy against financial crimes.”
“Staying out of the grey list is a multisectoral endeavor, and the BSP is keen to work with partners in sustaining the reform momentum and upholding the integrity of the country’s financial system.”
Bangko Sentral ng Pilipinas
The BSP added that it has implemented various regulations and conducted risk assessments to address money laundering, terrorism financing, and proliferation financing threats arising from virtual asset activities.
Moreover, to further improve compliance, the central bank said it will continue to collaborate with both public and private sector stakeholders to ensure alignment with FATF Recommendations 15 and 16, including enforcement of the Travel Rule and oversight of licensed and unlicensed VASPs.
The BSP cited the issuance of Circular No. 1108, or the Guidelines for VASPs, and Memorandum No. M-2023-042 dated December 28, 2023, which provides clarification on the implementation of the Philippine Travel Rule for VASPs.
“Ultimately, the goal is to ensure that customers are protected and that the Philippine financial system remains safe and secure.”
Bangko Sentral ng Pilipinas
Extended Pause on VASP Applications
The BSP’s response comes as it maintains its moratorium on new VASP license applications.
On August 20, the central bank announced an extension of the ban, first imposed in 2022, citing continued concerns over consumer protection and cybercrime. The restriction, effective September 1, 2025, will be reassessed based on local and global developments.
While acknowledging the benefits of blockchain and digital finance, the BSP said existing risks still outweigh the advantages of lifting the freeze. Only BSP-supervised financial institutions with “stable” ratings may continue to apply.
FATF’s June 2025
The Philippines remains rated “Partially Compliant” in implementing international standards for virtual asset regulation, according to the June update.
The global anti-money laundering watchdog noted that while the country has established key regulatory measures, such as licensing for VASPs and compliance with the Travel Rule, further progress is needed in enforcement and supervision to reach “largely compliant” status.
The FATF observed that jurisdictions in Southeast Asia, including the Philippines, continue to face challenges in identifying and regulating unlicensed or offshore VASPs, ensuring full implementation of the Travel Rule, and addressing emerging risks related to decentralized finance and stablecoins.
The report urged member states to accelerate enforcement efforts, enhance oversight of unhosted wallets and offshore entities, and strengthen collaboration between public and private sectors to mitigate money laundering and terrorism financing risks in the virtual asset space.
This article is published on BitPinas: Philippines Still “Partially Compliant” on Crypto Rules — BSP Says It’s Not Giving Up
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