Crypto regulation in the world: weekly digest #143

The Philippines

The Philippine Securities and Exchange Commission (SEC) has released new draft guidelines for Crypto-Assets Service Providers (CASPs), aiming to establish a robust regulatory framework for the country’s digital asset industry. These guidelines introduce stricter operational, financial, and compliance requirements for entities offering crypto-asset services in or to the Philippines.

The guidelines apply to all entities providing crypto-asset services in the Philippines or to Philippine residents, regardless of whether the provider is physically based in the country. Only SEC-registered stock corporations with at least four staff members residing in the Philippines are eligible for CASP registration. No entity may offer crypto-asset services without first securing a CASP license from the SEC.

Licensed CASPs must maintain a minimum paid-up capital of PHP 100 million (approximately $1.75 million), a significant increase from previous drafts. Beyond this threshold, applicants must demonstrate ongoing financial capacity to meet obligations and ensure operational resilience.

Companies also must implement robust client support systems, cyber resilience measures, local data centers, and undergo independent audits. Regular reporting is mandated: monthly, quarterly, and annual submissions covering user activity, trading records, and financial statements.

Leverage trading, unauthorized crypto derivatives, and proprietary trading of customer funds are prohibited unless expressly approved by the SEC. Crypto-assets with features related to gambling or obfuscation of identity/transactions are not allowed.

The SEC reserves the right to order the removal of any crypto-asset from a platform to protect investors. Tiered penalties are imposed for violations, including fines and possible license cancellation. The SEC may also impose moratoriums on new licenses and require additional information or compliance measures at its discretion.

These draft guidelines are open for public comment until April 26, 2025, after which the SEC will finalize the rules. The new framework is designed to enhance market stability, protect investors, and align the Philippine crypto-asset sector with international regulatory standards.

Panama

Panama City has become the first municipality in Panama to approve the use of cryptocurrencies for paying public services, marking a significant milestone for digital finance in Latin America.

Residents of the city will be able to use cryptocurrencies to pay for a wide range of municipal services, including taxes, fees, fines, parking tickets and more. The city will initially accept most popular cryptocurrencies such as Bitcoin (BTC), Ethereum (ETH), USD Coin (USDC), Tether (USDT).

Under Panamanian law, all government transactions must be settled in U.S. dollars. To comply, the city will partner with an authorized local bank that will instantly convert crypto payments into fiat (USD) before funds reach municipal accounts. This approach allows the city to offer crypto payment options without requiring changes to national legislation.

When a resident pays a public service fee in crypto, the payment is processed by the partnered bank. The bank receives the crypto, converts it to dollars in real time, and then deposits the equivalent amount in USD to the city’s account. This ensures compliance with existing financial regulations and protects the municipality from cryptocurrency price volatility.

Belarus

Belarus is set to introduce its central bank digital currency (CBDC), the digital ruble, with a full rollout planned for the second half of 2026. The initiative is a top priority for the National Bank of Belarus, aiming to enhance financial security, ensure full traceability of funds, and support cross-border payments, particularly in cooperation with Russia.

The digital ruble will enter full circulation for businesses in the latter half of 2026. Government agencies and the general public are expected to gain access in 2027. The platform is being built on the open-source Hyperledger Fabric blockchain, aligning Belarus with other countries like Russia and Brazil that are leveraging similar technology for their CBDC projects.

A major feature of the digital ruble is its «colorability» — the ability for the state to track the movement of digital assets throughout the financial system, ensuring both security and transparency. Belarus is working closely with Russia to ensure interoperability between their digital currencies, aiming to facilitate cross-border transactions and mutual settlements.

Belarus was one of the first CIS countries to legalize crypto. Presidential Decree No. 8 «On the Development of the Digital Economy», which came into force in 2018, fully legalized the mining, buying, selling, and exchange of cryptocurrencies and tokens for both individuals and legal entities. The decree also created a favorable regulatory environment, particularly within the High-Tech Park (HTP), where resident companies benefit from significant tax exemptions on crypto operations.

Individuals and companies can legally engage in cryptocurrency activities, including ICOs and smart contracts, and are exempt from income tax on crypto-related activities until at least 2025. However, there are increasing restrictions on peer-to-peer trading, with the government directing transactions through regulated platforms managed by HTP residents to combat money laundering and ensure transparency.

Belarus's digital ruble project is positioned to modernize the nation’s payment infrastructure, enhance oversight, and strengthen economic ties with regional partners through digital innovation and to align efforts in modernizing financial system with Russia.

News from other countries:

• Cryptocurrency exchange eXch has announced it will cease all operations on May 1, 2025, following allegations that it was used to launder funds stolen in the $1.4 billion Bybit hack.

• sUSD, the stablecoin issued by Synthetix, has faced a severe and prolonged depegging crisis, with its price plunging as low as $0.66 —over 30% below its intended $1 peg. This situation has exposed several structural and governance-related weaknesses in the Synthetix protocol and its stablecoin model. The mentioned problems of sUSD are might be similar to Terra/LUNA collapse reasons as algorithmic stablecoins have vulnerabilities in its design.

We continue to highlight the news of the world of crypto regulation worldwide. Please stay with us!