Philippines Implements 15% Capital Gains Tax on Crypto Sales

The Philippines has established itself as a forward-thinking nation in the realm of digital assets, beginning with the Bangko Sentral ng Pilipinas (BSP) introducing a regulatory framework for virtual currency exchanges and crypto-to-fiat service providers in 2017. This initiative not only legitimized cryptocurrency activities but also paved the way for widespread adoption across the country. By 2025, the Philippines has climbed to the 20th position globally in terms of crypto wealth, driven by a tech-savvy population, robust remittance flows, and progressive regulations.

In 2025, the Philippine government has implemented stringent regulations for crypto asset service providers (CASPs). Memorandum Circular No. 4 and 5 mandate that CASPs must register with the Philippine Securities and Exchange Commission (SEC) to maintain capital reserves. Additionally, CASP offices are required to physically incorporate in the Philippines and maintain a minimum capital of ₱100 million. Strict compliance with anti-money laundering (AML) procedures is also mandatory for CASPs.

The regulatory timeline in the Philippines highlights several key milestones. On May 9, 2023, the Philippine Peso Backed Stablecoin (PHPC) was introduced under the central bank’s regulatory sandbox. The Financial Products and Services Consumer Protection Act, enacted on November 28, 2022, provides consumer protection for crypto and other digital assets. BSP Memorandum No. M-2022-035, issued on September 1, 2022, will expire on September 1, 2025. BSP Circular No. 1108, effective from January 26, 2021, expanded CASPs registration with AML/CFT compliance. The BSP Travel Rule for crypto, implemented in 2018, requires sender and recipient information for crypto transactions above P50,000.

The Philippine government aims to become a regional leader in technology with cryptocurrency and blockchain development. The Department of Finance has expressed its commitment to creating a regulatory framework for crypto assets to combat cross-border tax evasion. The Central Bank of the Philippines (BSP) has partnered with the SEC to oversee crypto activities. The government has also created a framework for Initial Coin Offerings (ICOs) to protect citizens from scams and established the "crypto valley of Asia" to promote blockchain adoption and digitalization.

In 2025, the Philippines has implemented a comprehensive tax regime for cryptocurrencies. Capital gains tax (CGT) is up to 15% for selling crypto for fiat or exchanging for goods. Income from mining, staking, and receiving crypto as payment is subject to the standard income tax. Value Added Tax (VAT) of 12% applies to selling goods in exchange for crypto payments. Failure to report tax on crypto can result in penalties, including fines up to P10,000 to P50,000 and a 20% annual interest on unpaid tax. Severe tax evasion can lead to criminal charges. Crypto reporting is mandatory through BIR Form 1700 for employees, Form 1701 for self-employed individuals, and Form 1702 for businesses, with a deadline of April 15 of the following year. Taxes can be paid through authorized agent banks, eFPS, or online platforms such as GCash and Maya.

The Philippine government has implemented mandatory license regulations for all crypto asset service providers (CASPs). This requires SEC registration, adherence to strict marketing standards, a minimum capital of P100 million, physical incorporation in the Philippines, and compliance with strict anti-money laundering (AML) procedures. CASPs must submit regular reports to the SEC and the AML Council and provide detailed documentation 30 days prior to any activity, including business rules, AML/KYC systems, risk controls, and disclosure plans.

Crypto adoption in the Philippines is projected to reach a penetration rate of 10.49% in 2025, with an expected increase to 10.86% by 2026. Filipino cryptocurrency users are anticipated to reach 12.79 million by 2026. The revenue in the crypto market is expected to reach P1.1 billion, with an annual growth rate of 4.59%. There is no public information available regarding the government’s crypto holdings, and the central bank regulates crypto without disclosing any evidence related to crypto reserves.

Since the implementation of stricter rules in cryptocurrency, many crypto companies and platforms have adopted safety protocols and adhered to SEC regulations. Some of the leading crypto exchanges in the Philippines include Youholder, Bybit, Cex.io, Bit Get, and Bigone, which have significantly reduced the risk of fraudulent activities. With enhanced security measures and transparency in crypto transactions, the Philippines is positioning itself as a future crypto hub.