The veto covers all those cryptoassets that improve anonymity on licensed platforms.
Users maintain self-custody and P2P operations, but lose access to local exchanges.
The Central Bank of the Philippines is tightening its grip on privacy-first cryptocurrencies. Through memorandum M-2026-023, the entity prohibits licensed virtual asset service providers (VASPs) from listing or supporting “virtual assets that enhance anonymity,” among which monero (XMR) and zcash (ZEC) stand out.
This measure mainly responds to the difficulties that these currencies generate for comply with international AML (anti-money laundering) standardsCFT (counter-financing of terrorism) and the FATF Travel Rule, according to Philippine officials.
Authorities argue that the opacity of these cryptocurrencies such as monero and zcash prevents the traceability of transactions and increases the risks of illicit use.
The memorandum requires regulated exchanges to carry out rigorous due diligence before listing any token, evaluating six main pillars such as issuer background, market maturity, transparency or liquidity, for example, and to implement continuous monitoring with an obligation to list high-risk assets.
The Philippines, one of the most active cryptocurrency markets in Southeast Asia, seeks to “balance innovation” with consumer protection and the integrity of the financial system.
It is important to note that Filipino users They will be able to continue holding these currencies in self-custody or through P2P operationsbut they will lose the ease of buying and selling them on local regulated platforms, which will reduce their liquidity and accessibility.
The measure has reignited the debate between financial security and the right to privacy. Regulators defend the ban as a necessary tool against organized crime and money laundering.
On the contrary, critics of the cryptocurrency community consider it an attack on financial privacy and a move towards total state surveillance, especially given the growth of CBDCs, as CriptoNoticias has been reporting since 2018. The central dilemma is: how far should the State go in the name of security?
This decision is not isolated. In recent months, Other regulators have taken similar steps. In January 2026, the Dubai Financial Services Authority (DFSA) banned privacy cryptocurrencies on regulated platforms.
That same month, the Financial Intelligence Unit of India (FIU-IND) ordered to registered exchanges delist Monero, Zcash and other privacy coins for non-compliance with AML/CFT regulations. The Philippines thus joins a regulatory trend that has been reactivated in 2026.
The BSP’s decision reinforces a global trend against privacy coins. Although it seeks to mitigate risks, it also limits options for those who value financial privacy. The Philippine case once again puts on the table the permanent conflict between state control and individual freedom in the digital assets ecosystem.