This paper presents a brief overview of cryptocurrency, digital assets, regulation in other ASEAN member-states, and potential taxes imposed on cryptocurrency in the Philippines.
As of 2021, there were over 6.90 million cryptocurrency users in the Philippines. On average, a Filipino investor today holds about 1% to 2% of personal assets in crypto assets. The volume of cryptocurrency transactions in the Philippines increased by 36% from 5.30 million in 2019 to 7.20 million in 2020, while the value increased by 410% during the same period. This was due to the rise of Bitcoin prices and the expansion of regulations in the financial services in the country.
Among the ten ASEAN member-states, Indonesia, Lao PDR, Malaysia, Singapore, and Thailand impose a tax on cryptocurrency-related activities. At the same time, the Philippines, Brunei Darussalam, Cambodia, Myanmar, and Vietnam have only issued a public warning on investing in cryptocurrencies. In some ASEAN member-states, cryptocurrency is not considered legal tender in their respective jurisdictions. However, all ASEAN member-states are realigning and formulating their respective fintech and e-commerce policies on regulating cryptocurrencies.