The comprehensive encryption regulations in the Philippines have officially come into effect, including mandatory business licenses and capital requirements.

Gate News bot news, according to the latest regulations, cryptocurrency service providers in the Philippines are now required to obtain a license and comply with the strict information disclosure requirements set forth by the country's most comprehensive digital asset framework to date.

The new guidelines were initially published on May 30 in accordance with Memorandum No. 5 of the Philippine Securities and Exchange Commission and took effect on Thursday.

CASPs operating in the country must be registered as a local company with a minimum paid-up capital of P100 million (US$1.8 million). The company must also maintain a physical office, keep client assets separate from the company's assets, and submit regular operational reports.

Regulators also require documentation for any digital asset issued or serviced by a company that fully explains the characteristics of the asset, its risks, and its underlying technology.

Source: Decrypt