Are Stablecoins Legal in the Philippines? BSP Rules, VASP Licensing, and the PHPC Milestone

The legal status of stablecoins in the Philippines is clearer than in most countries. A regulatory sandbox here actually produced a real result. This guide explains what BSP’s VASP licensing framework requires and why a years-long moratorium blocks most new entrants in 2026. It also covers what the PHPC peso-stablecoin milestone actually proved.

Ask whether stablecoins are legal in the Philippines and you get a more definitive answer than in most jurisdictions still figuring this out. The short version is yes, but only through a specific, tightly controlled licensing path. That path currently has a locked door for anyone new.

This guide walks through what BSP actually allows and the milestone that proved the model works. It also covers the barrier facing anyone trying to enter this space today.

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The Short Answer: Regulated, Not Illegal, Not Legal Tender

Philippine law reserves legal tender status exclusively for the peso itself, and nothing else. Stablecoins never get that designation, and they are not expected to get it under the current framework anytime soon. That fact alone does not make them illegal, though, and never has. Conflating the two is the most common mistake people make when researching this topic.

BSP directly regulates stablecoin issuance and related services through its own Virtual Asset Service Provider framework. Once a VASP is properly and fully licensed, stablecoin activity falls under the same rules that already govern other virtual assets. That means anti-money laundering compliance, cybersecurity requirements, reserve backing standards, and ongoing reporting obligations. The honest summary is simple. Stablecoins get allowed under a regulated VASP regime, supervised directly by the central bank, without ever becoming sovereign currency themselves.

The PHPC Milestone That Changed the Conversation

Coins.ph, a Philippine VASP, received BSP approval in May 2024. It could then pilot a peso-backed stablecoin called PHPC inside the central bank’s regulatory sandbox. The overall design here was genuinely straightforward from the start. PHPC pegs 1:1 to the Philippine peso, backed by cash and cash equivalents held in domestic Philippine bank accounts.

The sandbox let BSP test PHPC across real use cases. That included remittances, cryptoasset exchange, and use as collateral in decentralized finance applications. In June 2025, PHPC formally exited the sandbox after meeting the performance metrics BSP had set. Its issuance capacity and general usability then expanded, subject to continued compliance, audits, and disclosure requirements. This graduation matters. It proved the sandbox model can actually produce a fully operational, BSP-supervised stablecoin, not just a permanently experimental one.

How VASP Licensing Actually Works

BSP Circular 1108 governs the entire framework, setting out two capital tiers based on what a VASP actually does. Type A, which includes custody or safekeeping of virtual assets, requires a minimum paid-up capital of ₱50 million. Type B, without custody functions, requires ₱10 million.

Beyond capital, applicants need several things. SEC registration as a corporation, a fit-and-proper test for directors and senior officers, a board-approved AML and KYC compliance program, and documented technology security and governance controls all apply. A one-time ₱100,000 registration fee applies once BSP formally grants the authority. A ₱300,000 annual supervisory fee follows, for as long as the license stays active. Any virtual asset transfer meeting or exceeding ₱50,000 also triggers Travel Rule compliance. Sender and recipient information must travel alongside the transaction itself.

The Moratorium Nobody New Can Get Around

Here is the detail that changes everything for anyone considering entering this space in 2026. BSP froze new VASP Certificate of Authority applications starting September 1, 2022. It then extended that moratorium indefinitely as of September 1, 2025. As of today, it remains firmly in place.

Only 13 VASPs currently hold a BSP license in total, including Coins. ph, PDAX, Maya, UnionBank, and GCrypto. A new entrant in 2026 has exactly two realistic paths. Register separately under the SEC’s Crypto-Asset Service Provider framework, which covers a different scope entirely, or acquire one of the existing 13 licensed VASPs outright. Simply applying for a fresh BSP VASP license is not currently an option. That holds true regardless of how strong the application might otherwise be.

Why Binance Still Cannot Touch Pesos

A recent, genuinely high-profile case makes the SEC-versus-BSP distinction fully concrete. Binance resumed Philippine operations in mid-2026 through a partnership with BlockShoals Technologies. It operates under the SEC’s CASP framework, rather than a BSP license.

That specific distinction carries real, meaningful consequences in practice. Binance and BlockShoals can offer crypto trading access under SEC rules. Neither one carries authorization to handle transactions involving the Philippine peso specifically. BSP confirmed this directly. Neither participation in a regulatory sandbox nor holding an SEC registration ever substitutes for the licensing requirements that apply specifically to peso-denominated activity. Trading crypto assets and moving pesos remain two legally distinct activities, governed by two different regulators. Clearing one hurdle does not clear the other.

What This Means for a Remittance or Payment Business

Any business planning to touch both stablecoins and Philippine pesos needs to think about both regulators at once. Focusing on just one is not enough. SEC CASP registration alone permits crypto-to-crypto activity but stops well short of anything involving pesos directly.

Reaching peso-denominated stablecoin activity legally means holding a BSP VASP license specifically. Given the current moratorium, that generally means partnering with or acquiring one of the 13 existing license holders, rather than applying fresh. Anyone evaluating a provider that claims to move pesos through stablecoin rails should confirm which specific license actually backs that claim. SEC registration alone does not cover it.

Why the Philippines Took This Approach

The sandbox strategy reflects a deliberate choice rather than regulatory hesitation. BSP could have banned stablecoins outright, the way some countries did in their early crypto years. It could also have ignored them entirely and let the space develop with no oversight at all.

Instead, the central bank built a controlled environment. That environment let it observe how a peso-pegged stablecoin behaves under real conditions before deciding how to regulate it permanently. PHPC’s successful graduation validated that approach. It gave BSP concrete performance data rather than theoretical projections. That likely explains why the broader VASP framework has grown more detailed and demanding over time, rather than looser.

The Moratorium Might Not Last Forever

Nothing about the current freeze on new VASP licenses suggests it is permanent. It has now run for several years without a clear end date, though. Regulatory moratoriums typically exist to let a supervisor catch up on oversight capacity, or refine a framework before expanding it further. They rarely close a door forever.

Watching for direct updates from BSP itself remains the only reliable way to know when this changes. Anyone building a long-term strategy around Philippine peso stablecoin activity should plan for the moratorium possibly lifting at some point. Treat the current locked door as the operating reality for now, though, not a temporary inconvenience.

Where ZoltMoney Fits

Understanding which license actually governs a peso transaction matters as much as the technology behind it. That matters especially in a market where licensing gaps carry real consequences. Check ZoltMoney’s current rate before your next transfer. Rely on providers that work through properly licensed banking channels for this specific corridor.

Frequently Asked Questions

Is the BSP VASP moratorium permanent?

Nothing currently confirms it is permanent, though it has run for several years without a set end date. Regulatory moratoriums typically exist to let a supervisor catch up on oversight capacity, or refine a framework before expanding it further. Watch for direct updates from BSP rather than assuming the current freeze never lifts.

Are stablecoins legal in the Philippines?

Yes, but only through a regulated path. Stablecoins never receive legal tender status, which belongs exclusively to the peso. BSP still permits their issuance and use through its licensed Virtual Asset Service Provider framework, subject to AML, cybersecurity, and reserve backing requirements.

What is PHPC and why does it matter?

PHPC is a peso-backed stablecoin issued by Coins.ph. It pegs 1:1 to the Philippine peso and stays backed by cash and cash equivalents in domestic bank accounts. It exited BSP’s regulatory sandbox in June 2025 after meeting performance benchmarks. That exit stands as one of the clearest, most concrete proofs that BSP’s sandbox model can produce a fully operational stablecoin.

Can a new company get a BSP VASP license in 2026?

Not through a fresh application. BSP froze new VASP Certificate of Authority applications in September 2022 and extended that moratorium indefinitely from September 2025. New entrants must either register under the SEC’s separate CASP framework or acquire one of the 13 existing BSP-licensed VASPs.

Why can’t Binance handle Philippine peso transactions?

Binance operates in the Philippines under the SEC’s CASP framework, through a partner. That framework covers crypto trading but not peso-denominated activity. BSP requires a separate VASP license specifically for handling pesos, which neither Binance nor its partner currently holds.

What capital does a company need for a BSP VASP license?

BSP Circular 1108 sets two tiers. Type A, covering custody of virtual assets, requires ₱50 million in minimum paid-up capital. Type B, without custody functions, requires ₱10 million, alongside registration and annual supervisory fees.

Does SEC crypto registration let a company handle pesos in the Philippines?

No. SEC CASP registration covers crypto-asset trading activity but does not authorize peso-denominated transactions. Handling pesos specifically requires a separate BSP VASP license, and the two registrations serve genuinely different regulatory purposes.

Disclaimer

This blog is for educational and informational purposes only and does not constitute legal advice. ZoltMoney facilitates transfers exclusively through authorised and fully licensed banking and financial partners. It does not itself issue, trade, or promote stablecoins or other cryptocurrency. Regulatory frameworks, moratorium status, and licensing details mentioned here are illustrative and can change. Consult a qualified Philippine lawyer before making decisions involving digital assets.