Philippines bans privacy coins on crypto exchanges

The central bank of the Philippines is drawing a hard line when it comes to anonymity-enhancing cryptocurrencies. The Bangko Sentral ng Pilipinas (BSP) is now prohibiting virtual asset service providers (VASPs) from listing or supporting so-called privacy virtual assets. At the same time, the regulator is imposing stricter requirements for listing, monitoring and removing tokens.

Privacy coins are no longer welcome

According to The Philippine Star, the BSP makes it clear that anonymity-enhancing virtual assets may not appear on VASPs’ platforms. Think of coins that hide transactions or mask user identities. According to the regulator, this type of cryptocurrency poses a risk to consumer protection and does not comply with the applicable supervisory requirements.

The BSP indicates that VASPs must immediately suspend or remove tokens in the event of negative market and economic developments, legal or regulatory violations, cybersecurity problems or misleading information provision. Abnormal price movements or market abuse can also be grounds for delisting.

Stricter rules for token listing

In addition to the ban on privacy coins, the BSP requires that VASPs tighten their due diligence when admitting tokens. Platforms must now meet clear criteria before a token is listed, and must actively track whether existing listings still meet those requirements.

If a token no longer meets the requirements, VASPs are obliged to proceed with delisting. The measure fits into a broader international trend in which regulators are increasingly scrutinising crypto services that facilitate anonymity. Pressure on privacy-related coins is also increasing in other regions, as regulators worldwide try to strengthen their grip on the crypto sector.