SEC Sets Effectivity Date of Crypto Asset Service Provider (CASP) Rules

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The Securities and Exchange Commission (SEC) has officially implemented its landmark regulations on crypto-asset service providers (CASPs), setting July 5, 2025 as the effectivity date of SEC Memorandum Circular No. 4 and No. 5, Series of 2025.

• Known respectively as the SEC Rules on Crypto-Asset Service Providers and the SEC Guidelines on the Operations of Crypto-Asset Service Providers, the two issuances establish the country’s most comprehensive framework to date for regulating entities engaged in crypto-asset-related services.
• The rules apply to all CASPs, defined as entities that, as a business, offer or engage in services such as offering crypto-assets to the public, operating trading platforms, and other intermediation activities.
• The regulations also cover third-party entities involved in marketing crypto-assets and crypto-related services, including digital platforms.

BitPinas has written extensively on the CASP Rules of the SEC:

• SEC Clarifies CASP Rules to Web3 Community: Here’s What to Know
• Crypto Influencers Purge Old Posts as SEC CASP Rules Take Effect
• Livestream Webcasts About CASP:
  • Webcast: SEC Final Crypto Rules: What It Means For Influencers, KOLs, Educators
  • Webcast: SEC Final Crypto Rules — What #CryptoPH Needs to Know
  • Webcast: The Future of Crypto Exchanges in the Philippines
  • Webcast: Crypto Content Under CASP: How KOLs are Adapting to New Rules

Jurisdiction and Compliance

The SEC clarified that regulatory jurisdiction over crypto-assets depends on their nature and usage.

• Crypto-assets used primarily for payment fall under the Bangko Sentral ng Pilipinas (BSP), while those considered securities or financial products fall within the SEC’s oversight.

All CASPs and associated service providers are now required to comply fully with the new rules. Violators may face penalties, including suspension of operations, administrative fines, or criminal charges.

The SEC also urged the public to report unregistered crypto activities to the Commission.

Penalties, Oversight, and Enforcement Powers

Under the rules, the SEC may impose administrative fines ranging from ₱50,000 to ₱10 million per instance of investment fraud, with an additional ₱10,000 per day for continuing violations. If profit is gained or loss avoided as a result of non-compliance, fines of up to three times the amount involved may also be imposed.

CASPs are held responsible for the actions of their officers, agents, and even outsourced third-party service providers.

• Violations may lead to the suspension or revocation of licenses, contempt orders, disgorgement of profits, and independent civil actions filed by the Commission on behalf of aggrieved consumers.
• In cases of willful violations, criminal penalties of one to five years imprisonment and fines of ₱50,000 to ₱2 million may be imposed by the courts.

Outsourcing and Consumer Protection

The CASP Guidelines require all outsourcing arrangements to be documented through written agreements, with explicit provisions on access, auditability, data privacy, and continuity.

• CASPs remain fully liable for outsourced services, and any subcontractor must be able to meet SEC standards.

Reportorial Requirements

Registered CASPs must submit extensive and regular reports to the Commission. These include:

• Monthly: Financial statements, wallet addresses, related party transactions, and crypto-asset portfolio disclosures.
• Quarterly: Board meeting minutes, compliance certifications, and risk exposure reports.
• Annually: Audited financial statements and third-party attestation reports.

Public Guidance and Queries

The SEC acknowledged stakeholder concerns regarding the effectivity and implementation of the new framework.

It welcomes inquiries through its official email, casp@sec.gov.ph, and reiterated its commitment to promoting investor protection and fair trading.

This article is published on BitPinas: SEC Sets Effectivity Date of Crypto Asset Service Provider (CASP) Rules

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