The Central Financial institution of the Philippines is stepping up its crackdown on privacy-first cryptocurrencies. Via Memorandum M-2026-023, the corporate prohibits licensed digital asset service suppliers (VASPs) from itemizing or supporting “anonymity-enhancing digital property.” Amongst them, monero (XMR) and zcash (ZEC) stand out.
This measure primarily addresses the difficulties posed by these currencies. Compliant with worldwide AML (anti-money laundering) requirementsIn accordance with Philippine officers, CFT (Combating the Financing of Terrorism) and FATF journey guidelines.
Authorities argue that the opacity of cryptocurrencies similar to Monero and Zcash makes it troublesome to hint transactions and will increase the chance of fraud.
The memorandum requires regulated exchanges to conduct rigorous due diligence earlier than itemizing tokens, evaluating six key pillars similar to issuer background, market maturity, transparency and liquidity, and ongoing monitoring with an obligation to record high-risk property.
The Philippines, some of the energetic crypto markets in Southeast Asia, goals to “stability innovation” with client safety and monetary system integrity.
It is crucial for Filipino customers to notice the next: They’ll proceed to carry these currencies by way of self-custody or P2P operationsNevertheless, it’s not straightforward to purchase and promote on native regulated platforms, lowering liquidity and accessibility.
The measure has reignited the controversy between financial safety and the precise to privateness. Regulators have defended the ban as a vital measure towards organized crime and cash laundering.
Quite the opposite, critics within the crypto group see this as an assault on monetary privateness and a transfer in direction of full state surveillance, particularly given the expansion of CBDCs, as reported by CriptoNoticias since 2018. The central dilemma is: How far ought to states go within the title of safety?
This choice isn’t an remoted one. In the previous few months, Different regulators have taken related steps. In January 2026, Dubai Monetary Providers Authority (DFSA) banned privateness cryptocurrencies on regulated platforms.
In the identical month, the Monetary Intelligence Unit of India (FIU-IND) ordered registered exchanges to delist Monero, Zcash, and different privateness cash for non-compliance with AML/CFT rules. The Philippines will subsequently be part of the reintroduced regulatory stream in 2026.
The BSP choice is World traits in direction of privateness cash. Though supposed to scale back threat, it additionally limits the choices of those that worth monetary privateness. The Philippine case has as soon as once more dropped at the fore the persistent battle between state management and particular person freedom within the digital asset ecosystem.
