After the Philippines’ Securities and Exchange Commission draft  releases during late 2024 till early  2025—finally, Crypto-Assets Service Providers (CASP) Rules and Regulations were finalized and established just last week of  May. Now, just recently, the Department of Finance (DOF) shared its commitment to implement the global Crypto-Asset Reporting Framework (CARF) by the year 2027 or 2028.

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To put it simply, CASP is made to regulate the cryptocurrency market, trade, and promotions—which involves licensing requirements and setting up conditions, with the corresponding fees, and punishments in case of any violations. Meanwhile, adopting CARF straightforwardly means placing tax on crypto-assets along with the operations that revolve around it.

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These sets of rules and regulations are intended to ensure that the booming and steadily evolving blockchain/cryptocurrency industry adheres to the AMLA principles, and remains unexempted from accountability to the laws of state. 

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In spite of being a  little taken aback by surprise, by the relatively new sets of rules and regulations, crypto communities in the Philippines seem to be quickly adapting. Nevertheless, it naturally introduced significant hurdles and needs for clarifications, this will mostly be felt by small startups, as well as community and education based platforms. 

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It hasn’t been long since the implementation of CASPs Rules and Regulations, so despite carefully understanding and navigating the guidelines, it’s probably safe to say that its practical implications and applications are still yet to be actually seen.

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All over the globe, Web3 is undergoing a development never seen before—both in positive, negative, and lots of ways in between. And maybe, obstacles simply cannot be avoided on the way to new milestones. However, these past events can’t help but raise some questions. Is this how people pictured the transition to an ideal world of Decentralized Finance would be like? People are having conflicting views and opinions, and the government responds to it, as if by saying, ‘decentralized doesn’t equate to being unregulated.’

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In light of all this, driven by the global financial crisis, it takes us all back when Bitcoin’s genesis block was—for the very first time on January 3, 2009—deployed by Satoshi Nakamoto. DeFi and cryptocurrency, which many hope to gradually take over the traditional framework of finance, is now more than ever on a worldwide scale being political. 

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