Philippine Central Bank Orders VASPs to Tighten Token Due Diligence and Ban Privacy Coins

The Bangko Sentral ng Pilipinas (BSP) has issued a memorandum requiring virtual asset service providers (VASPs) to strengthen due diligence and verification processes, including systematic screening, ongoing monitoring, and delisting triggers for tokens listed on their platforms. According to Foresight News, the Philippine Star reported that the memorandum sets out detailed requirements for how VASPs should assess and manage listed tokens. Under the memorandum, VASPs must evaluate tokens across six areas: the issuer’s background, market maturity, use case and transparency, traceability and security, redemption and liquidity reserves, and legal compliance. VASPs are also required to set thresholds for deviations from listing standards that would trigger delisting procedures. The BSP said tokens must be immediately suspended or delisted in cases involving adverse market dynamics, regulatory violations, cybersecurity risks, misleading disclosures, or abnormal market volatility. The memorandum further states that privacy-enhancing virtual assets, or privacy coins, are prohibited from being listed or supported on VASP platforms.