BSP flags crypto anonymity risks, backs strict oversight

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) is pushing for tight oversight of cryptocurrency transactions, warning that transfers outside regulated channels can make it difficult for authorities to identify the people behind them.

“We want to regulate those things very, very strictly,” BSP Governor Eli Remolona Jr. said in an interview with Bankero Unfiltered when asked about the BSP’s stance on cryptocurrencies, amid efforts by global crypto exchange Binance to reenter the Philippine market.

Remolona said the BSP wants transactions involving virtual assets handled through regulated virtual asset service providers (VASPs), or companies that facilitate the exchange, transfer or safekeeping of digital assets under regulatory requirements.

Such providers are subject to know-your-customer (KYC) rules, which require financial firms to verify the identities of their clients and help authorities trace potentially suspicious transactions.

“Crypto instruments have to be traded from a VASP because thy would have KYC. We kind of know who’s doing what,” Remolona said.

“But a crypto instrument, it just goes into an individual’s wallet. All you get is the IP address. You don’t know who’s really doing it. That’s very dangerous,” the BSP chief said.

Remolona said the BSP seeks to prevent such risks “as much as we can,” as regulators grapple with the growing use of digital assets alongside concerns over fraud, cybercrime and the ability to trace transactions.

Asked whether crypto-related scams have already occurred in the Philippines, Remolona said he believed there had been cases, although they were not as large as those seen in the United States and other countries.

The central bank has maintained a moratorium on the issuance of new VASP licenses since September 2025.

The BSP said at the time that while blockchain and other digital technologies had advanced financial services, its assessments continued to show concerns over consumer protection and rising cybercrime risks.

The moratorium remains subject to reassessment based on domestic and global developments.

The BSP’s caution comes alongside a broader regulatory framework being developed for the crypto industry.

The Securities and Exchange Commission moved to block access to Binance in 2024 after finding that the global exchange had been offering investment and trading services to Filipinos without the necessary registration and licenses.

Binance announced in May this year that it had partnered with Philippine-registered BlockShoals Technologies Inc., an approved participant under the SEC’s Strategic Sandbox or StratBox framework. A regulatory sandbox allows companies to test new financial products or business models in a controlled setting under regulatory supervision.

Remolona’s comments suggest that even as regulators open channels for financial innovation, the BSP continues to place emphasis on traceability and customer identification in virtual asset transactions.