BSP & Philippines Stablecoin Regulation: VASP Licensing for 2026

BSP's VASP framework, PHPC's pilot license, capital requirements, and what issuers and businesses need to know about Philippine stablecoin compliance in 2026.

An editorial illustration of Philippine islands connected through a supervised digital payment network
An editorial illustration of Philippine islands connected through a supervised digital payment network

TL;DR

The Bangko Sentral ng Pilipinas (BSP) regulates stablecoins in the Philippines under its Virtual Asset Service Provider (VASP) framework, codified in BSP Circular 1108. PHPC, issued by Coins.ph, became the first peso-pegged stablecoin to win a BSP pilot license. USD stablecoins like USDT and USDC are not BSP-issued, but they may be offered to Filipino users only through BSP-licensed VASPs. This briefing covers the licensing pathway, capital requirements, AML/CFT obligations, and what issuers, businesses, and developers need to know before operating in the Philippines.

The regulatory framework

BSP Circular 1108 (2021), supplemented by BSP Memorandum M-2022-035 and later guidance, defines a Virtual Asset Service Provider as any entity that, as a business:

  • Exchanges virtual assets for fiat or other virtual assets
  • Transfers virtual assets between persons
  • Safekeeps or administers virtual assets on behalf of others
  • Participates in or provides financial services related to virtual asset issuance

Stablecoin issuance falls squarely inside this definition. The BSP also runs a regulatory sandbox for novel use cases — PHPC was admitted to this sandbox before progressing to a full pilot license.

The Philippines is also a member of the FATF, so its stablecoin rules incorporate the FATF Travel Rule (transfers above PHP 50,000 require originator and beneficiary information).

Who is licensed today

As of 2026, the BSP-licensed VASP roster includes:

  • Coins.ph — issuer of PHPC, full VASP license
  • PDAX — Philippine Digital Asset Exchange
  • Maya Philippines — neobank with VASP add-on
  • Betur (PDAX subsidiary)
  • Topjuan
  • Several smaller exchanges and OTC desks

The full, current list is published at bsp.gov.ph under the "List of BSFIs with VASP licenses" page.

For stablecoin issuers

To launch a peso-pegged or other stablecoin in the Philippines, an applicant must:

  1. Capital: maintain minimum paid-up capital of PHP 50,000,000 (approximately USD 850,000)
  2. Reserves: hold 1:1 reserves in segregated accounts at BSP-supervised banks
  3. AML/CFT: implement a full Anti-Money-Laundering and Counter-Financing-of-Terrorism programme, including customer due diligence, beneficial-ownership identification, sanctions screening, and suspicious-transaction reporting to AMLC
  4. Governance: appoint a fit-and-proper board, including a Chief Compliance Officer and a Money-Laundering Reporting Officer
  5. IT and cyber: meet BSP Circular 982 cybersecurity expectations, including penetration testing and incident reporting
  6. Audit and attestation: publish monthly reserve attestations from a Philippine-licensed accounting firm
  7. Redemption: guarantee 1:1 redemption within a defined window (typically T+1 to T+3)

The BSP encourages applicants to enter the sandbox first. Sandbox approval is faster and gives the issuer space to refine operations before applying for a full license.

For businesses

Businesses can hold and use stablecoins acquired through BSP-licensed VASPs. The peso remains the only legal tender, so a merchant is never obliged to accept stablecoins — but accepting them is permitted by mutual agreement. Tax treatment: PHP-pegged tokens are treated as functionally equivalent to peso for VAT purposes when accepted at par for goods and services; USD stablecoins are treated as a foreign currency asset and may trigger FX gain or loss.

For developers and integrators

Developers building remittance, payments, or DeFi products that touch Philippine users should:

  • Integrate only with BSP-licensed VASPs for fiat on/off-ramps
  • Implement the FATF Travel Rule for transfers above PHP 50,000
  • Geo-fence retail offerings until a partner VASP is engaged
  • Treat the Philippines as a higher-risk corridor for cross-border KYC due to volume of OFW remittance traffic

OFW remittance corridors

The US → Philippines, UAE → Philippines, and Singapore → Philippines remittance corridors together receive over USD 40B per year. On-chain stablecoin volume in these corridors has grown roughly 3x per year since 2023, with most settlement occurring in USDT or USDC and being converted to PHP through Coins.ph, PDAX, or Maya at the receiving end. The BSP has explicitly identified this corridor activity as a positive use case for the VASP framework.

What to watch in 2026

  • Full PHPC retail launch — graduation from pilot to general availability
  • MUFG–Coins.ph stablecoin tie-up for B2B settlement
  • BSP Circular 1108 amendment expected mid-2026, raising minimum capital requirements
  • Multi-currency stablecoin licensing — the BSP has signalled it may approve USD-pegged issuance from a Philippine-domiciled issuer in 2026

Where to learn more