Philippines to adopt crypto tax framework by 2028??
The Philippines has committed to adopt an international framework for crypto-asset reporting by 2028 to combat cross-border tax evasion and illicit financial flows, the country’s Department of Finance (DOF) announced.
“We need faster and stronger systems for collaboration if we are to beat tax evasion and illicit transactions,” Finance Secretary Ralph Recto said. “The government must ensure that crypto-asset users are paying their fair share of taxes and that no illicit financial activity goes unpunished.”
The commitment to the Crypto-Asset Reporting Framework (CARF), developed by the Organisation for Economic Cooperation and Development (OECD), was formalised by DOF Undersecretary Charlito Martin Mendoza during the 8th Asia Initiative Meeting in Mal, Maldives.
The CARF sets global standards for the automatic exchange of information between tax authorities on crypto transactions, aiming to prevent taxpayers from hiding income and assets using digital currencies.
“This is a timely commitment as digital currency becomes one of the preferred means of transactions,” Recto said. The Philippines joins 67 jurisdictions, including 10 in Asia, that have pledged to implement the CARF by 2027 or 2028.
Crypto adoption in the Philippines
The move comes amid rapid crypto adoption in the country. Recto earlier estimated that Filipinos have invested around PHP6 trillion ($107 billion) in crypto assets, driven by a young, tech-savvy population and widespread use of digital wallets.
“In the Philippines, a lot of Filipinos have already invested in crypto. I expect more, especially with the digital connectivity,” he said in an interview with Bloomberg in February 2025.
However, data from estimated 2024 crypto inflows at $43.1 billion, down from $66 billion in 2023 C highlighting the need for reliable oversight and regulation.?
At the same meeting, the DOF shared the country’s reforms in adopting the Convention on Mutual Administrative Assistance in Tax Matters, enhancing the exchange of information (EOI), and preparing for the Enhanced Monitoring Process.
The Asia Initiative also launched the 2025 Tax Transparency in Asia Report, noting that 1.9 billion in undeclared revenue was identified through EOI and automatic exchange in 2024 alone.
Regulation and innovation
During a panel discussion at the Philippine Blockchain Week 2025, Paul Soliman, Chairman and CEO of BayaniChain, credited regulatory frameworks for accelerating adoption in the country. Soliman said that the Philippines is open to innovation but with guardrails. He cited the new Securities and Exchange Commission (SEC) sandbox which allows companies to test asset tokenisation and issue security tokens under the agency’s oversight.
