BSP tightens oversight of virtual asset listings

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June 14, 2026 | 12:00am

MANILA, Philippines — The Bangko Sentral ng Pilipinas (BSP) has ordered virtual asset service providers (VASPs) to strengthen their screening, monitoring and delisting standards for coins and tokens offered to customers, as regulators move to tighten safeguards in the fast-evolving digital asset market.

In a memorandum, BSP Deputy Governor Lyn Javier said VASPs are required to establish a “robust due diligence and accreditation process” for selecting virtual assets that will be listed or traded on their platforms.

Under the memorandum, VASPs must assess virtual assets based on six pillars: issuer’s background, market maturity, use cases, transparency, traceability and security, redemption, liquidity and reserves as well as legal and compliance.

For the issuer’s background, VASPs may evaluate documents such as articles of incorporation, general information sheets, audited financial statements, ownership and group structure, ultimate beneficial owners and the results of fitness and propriety checks on directors, officers, operators or proponents of the issuer.

VASPs may also look into potential conflicts of interest involving the issuer, other VASPs, regulators, government officers or other related parties.

On market maturity, the BSP said VASPs may consider the coin or token’s current or planned market capitalization, market share relative to other top coins on global exchanges, average trading volume over the past 30 days, issue price, years in the market, number of on-chain holders and the exchanges that support the asset.

Information on the objectives, purpose or utility of coins and tokens should also be made available to help customers make informed decisions.

Whitepapers should be readily accessible to customers, including details on the project’s past and future plans, target users, tokenomics, methods of purchase, supported blockchains and risks such as money laundering, terrorist financing, proliferation financing, cybersecurity, liquidity, governance and consumer protection.

For transparency, traceability and security, VASPs may review the technology used by the token, its underlying blockchain or distributed ledger technology, consensus algorithm, interoperability, vulnerabilities, independent audits and the blockchain analytics companies that can trace the asset.

The BSP placed particular emphasis on asset-backed or fiat-backed virtual assets, requiring VASPs to assess the lifecycle of the coin or token, including minting, issuance, redemption and burning, as well as the protocols used to maintain stable value.

For redemption, liquidity and reserves, VASPs may evaluate the list of liquidity providers or exchanges supporting the virtual asset, information on withdrawal rights and, for asset-backed or fiat-backed assets, the composition and verifiability of reserves.

The BSP said these factors are important in determining a virtual asset’s ability to meet redemption demand, support market stability and maintain public trust in its valuation.

On legal and compliance risks, VASPs may review the terms and conditions of ownership, rights and obligations of buyers, restrictions on transfer of ownership, complaints and dispute resolution procedures, the regulatory status of the asset in other jurisdictions and its proposed accounting and valuation treatment.

While the BSP set out specific documentary requirements and considerations, it said the list is “not exhaustive.” VASPs may develop their own token or coin listing frameworks and include other factors, provided these are aligned with the BSP guidelines.

The BSP also required VASPs to conduct ongoing monitoring of the criteria applied during listing and to set thresholds for deviations from these standards. These thresholds will serve as triggers for the delisting of a virtual asset.

The regulator said VASPs should suspend or immediately delist a token or coin in cases of adverse market and economic developments, legal and regulatory non-compliance, cybersecurity concerns or consumer protection risks.

Coins or tokens may likewise be suspended or delisted due to misleading disclosures, market abuse or abnormal market or price movements.

The BSP also made clear that the offering of anonymity-enhancing virtual assets, also known as privacy virtual assets, is prohibited from being listed or supported by VASPs.