How it works in the Philippines
Yes, you can pay your team in the Philippines in stablecoins with Toku. Salary is set, withheld and paid in Philippine pesos as the Labor Code requires, employees who opt in can then have their net pay, once paid, converted into USDC, and contractors can be settled in USDC or USDT.
Paying employees
Article 102 of the Labor Code requires wages in legal tender, even when the employee asks otherwise, and the BSP says virtual assets are not legal tender, so the salary is paid in pesos first. Employees who opt in can then have their net pay, once paid, converted into USDC in a way Toku confirms for each person. (Sources: Supreme Court, National Federation of Labor v. Court of Appeals, G.R. No. 149464 (October 19, 2004), quoting Labor Code articles 97 and 102; Omnibus Rules Implementing the Labor Code, Book III, Rule VIII (Supreme Court E-Library); Bangko Sentral ng Pilipinas, Circular No. 1108 (2021), guidelines for virtual asset service providers)
Paying contractors
Contractors can invoice in pesos or US dollars and be settled in USDC or USDT. The fees are taxable income in whatever form paid, and because the BSP has told banks that retail customers may not use unregistered offshore platforms, Toku confirms the route for each contractor before the first payment. (Sources: Republic Act No. 8424, National Internal Revenue Code of 1997, section 32 (Supreme Court E-Library); Bangko Sentral ng Pilipinas, Memorandum M-2026-003 on dealing with virtual asset service providers (January 30, 2026))
Salary is set and taxed in local currency. Employees who opt in have their net pay, once paid, converted into USDC, and contractors are settled in USDC or USDT, where the local rules allow it. Toku handles the conversion, the compliance checks and the tax and payment reporting, and confirms the arrangement for each person before the first payment.
How the Philippines treats crypto and stablecoins
The Bangko Sentral ng Pilipinas defines a virtual asset as a digital unit that can be traded or transferred and used for payment or investment, and says virtual assets are not issued or guaranteed by any jurisdiction and are not legal tender. Crypto exchanges are regulated by the BSP as money service businesses. (Source: Bangko Sentral ng Pilipinas, Circular No. 1108 (2021), guidelines for virtual asset service providers)
Philippine law makes notes and coins issued by the BSP legal tender for all debts. The BSP says virtual assets are not issued or guaranteed by any jurisdiction and are not legal tender, and defines a virtual asset as a digital unit that can be traded or transferred and used for payment or investment. (Sources: Republic Act No. 7653, The New Central Bank Act, section 52 (Supreme Court E-Library); Bangko Sentral ng Pilipinas, Circular No. 1108 (2021), guidelines for virtual asset service providers)
Crypto exchanges and other virtual asset service providers are treated as money service businesses regulated and examined by the BSP. Its regime covers exchanging virtual assets for fiat or other virtual assets, transferring them and holding them in custody for others, while token offerings fall to the Securities and Exchange Commission (SEC). Providers must pass on sender and recipient details for virtual asset transfers of PHP 50,000 or more. (Sources: Bangko Sentral ng Pilipinas, Circular No. 1108 (2021), guidelines for virtual asset service providers; Bangko Sentral ng Pilipinas: FAQs on the guidelines for virtual asset service providers)
Since September 2022 the BSP has closed the regular window for new provider licences, and in August 2025 it extended that moratorium from September 1, 2025 with no end date. A January 2026 BSP memorandum tells banks and other supervised institutions to deal only with providers registered with the BSP, crypto-asset service providers registered with the SEC or properly licensed offshore providers, and says direct access by retail customers residing in the Philippines to offshore providers not registered with the BSP or the SEC is not allowed. (Sources: Bangko Sentral ng Pilipinas, Memorandum M-2022-035 on VASP licences (August 10, 2022); Bangko Sentral ng Pilipinas, Memorandum M-2025-031 continuing the moratorium on new VASP licences (August 29, 2025); Bangko Sentral ng Pilipinas, Memorandum M-2026-003 on dealing with virtual asset service providers (January 30, 2026))
The BSP's June 2026 listing guidelines name stablecoins as one type of coin or token providers may weigh in their due diligence, ask them to weigh the composition and verifiability of reserves and redemption rights for fiat-backed tokens, and ban listing privacy coins. (Source: Bangko Sentral ng Pilipinas, Memorandum M-2026-023, coin and token listing guidelines (June 5, 2026))
Local rules for paying employees in the Philippines
Article 102 of the Labor Code bars paying wages by promissory notes, vouchers, coupons, tokens, tickets, chits or any object other than legal tender, even when expressly requested by the employee. The implementing rules say wages are paid in legal tender and absolutely prohibit tokens or other forms said to represent legal tender, even at the employee's request. (Sources: Supreme Court, National Federation of Labor v. Court of Appeals, G.R. No. 149464 (October 19, 2004), quoting Labor Code articles 97 and 102; Omnibus Rules Implementing the Labor Code, Book III, Rule VIII (Supreme Court E-Library))
In National Federation of Labor v. Court of Appeals (2004), the Supreme Court held that wages may be paid only in legal tender, with cheques or money orders allowed only in the cases Article 102 lists. The Labor Code's definition of wage includes the fair and reasonable value of board, lodging or other facilities customarily furnished by the employer. (Source: Supreme Court, National Federation of Labor v. Court of Appeals, G.R. No. 149464 (October 19, 2004), quoting Labor Code articles 97 and 102)
Because the BSP says virtual assets are not legal tender, the salary itself is paid in pesos, and any USDC is the employee's own choice for their net pay. If anything is paid in a medium other than money, the tax rules treat its fair market value as the amount subject to withholding tax on compensation. (Sources: Bangko Sentral ng Pilipinas, Circular No. 1108 (2021), guidelines for virtual asset service providers; Bureau of Internal Revenue, Revenue Regulations No. 13-2022)
Local rules for paying contractors in the Philippines
Article 102 refers to the wages of an employee, so if a contractor were treated as an employee, the legal tender rule would apply to their pay. The sources we cite do not set out how that classification is decided. (Source: Supreme Court, National Federation of Labor v. Court of Appeals, G.R. No. 149464 (October 19, 2004), quoting Labor Code articles 97 and 102)
The BSP's January 2026 memorandum, addressed to banks and other supervised institutions, says direct access by retail customers residing in the Philippines to offshore crypto platforms is not allowed unless the platform is registered with the BSP or the SEC. It does not say how this applies to a contractor paid by a client abroad, or how a contractor should hold or convert stablecoins received. (Source: Bangko Sentral ng Pilipinas, Memorandum M-2026-003 on dealing with virtual asset service providers (January 30, 2026))
Gross income under the tax code includes pay for services in whatever form paid, including fees, so crypto received as fees would on that wording be taxable income, although we found no BIR rule addressing crypto. Under the BSP's foreign exchange manual, foreign currency that residents earn from non-trade sources such as services can be used freely, converted to pesos, or kept in foreign currency accounts in the Philippines or abroad. The manual does not mention virtual assets. (Sources: Republic Act No. 8424, National Internal Revenue Code of 1997, section 32 (Supreme Court E-Library); Bangko Sentral ng Pilipinas, Manual of Regulations on Foreign Exchange Transactions)
Ways to pay people in the Philippines, compared
How the common ways to pay someone in the Philippines compare. The Toku row describes how Toku works; coverage and the arrangement for each person are confirmed before the first payment.
| Method | Employees | Contractors | What to keep on record |
|---|---|---|---|
| Local payroll and bank transfer in PHP | Salary paid in local currency, with tax and contributions withheld. No stablecoin option. | Paid in PHP or another fiat currency to a bank account. | Payslip or invoice, payment confirmation and any tax withheld. |
| Sending USDC or USDT yourself | Doesn't cover employees on its own: salary still has to be set, withheld and paid under local payroll rules. | You handle the payment, foreign-exchange, tax and reporting rules in the Philippines yourself, and some payment rules there may restrict it. | The PHP value on the payment date, the exchange rate used, wallet addresses and transaction hashes. |
| Toku | Salary set, withheld and paid in PHP through Toku's employer of record, with a USDC option for net pay arranged as described on this page. | Invoices in PHP (or USD where local invoicing rules allow it), settled in USDC or USDT where Toku confirms the route for that contractor, with approvals and payment records in one place. | Contracts, invoices, payment records and tax documents kept with each payment. |
Tax and reporting
Gross income includes pay for services in whatever form paid, including fees, salaries and wages, and gains from dealings in property. On that wording, crypto received as pay or fees would be taxable income, but we found no BIR rule addressing crypto, including whether a gain on disposing of it is a gain from dealings in property. (Source: Republic Act No. 8424, National Internal Revenue Code of 1997, section 32 (Supreme Court E-Library))
When compensation is paid in a medium other than money, the fair market value of what is received is the amount subject to withholding tax on compensation, under Revenue Regulations No. 2-98 as quoted in Revenue Regulations No. 13-2022. (Source: Bureau of Internal Revenue, Revenue Regulations No. 13-2022)
The Department of Finance has committed the Philippines to implement the OECD Crypto-Asset Reporting Framework (CARF) by 2028. (Source: Department of Finance: the Philippines to implement the crypto-asset reporting framework (June 17, 2025))
Recent changes
- June 17, 2025: The Department of Finance announced the commitment to implement the OECD Crypto-Asset Reporting Framework by 2028. (Source: Department of Finance: the Philippines to implement the crypto-asset reporting framework (June 17, 2025))
- August 29, 2025: The BSP continued its moratorium on new virtual asset service provider licences from September 1, 2025, subject to reassessment, and its 2026 Citizen's Charter lists the licence as a delisted service. (Sources: Bangko Sentral ng Pilipinas, Memorandum M-2025-031 continuing the moratorium on new VASP licences (August 29, 2025); Bangko Sentral ng Pilipinas, Citizen's Charter 2026)
- January 30, 2026: A BSP memorandum limited supervised institutions to registered or properly licensed crypto providers and said direct access by retail customers in the Philippines to unregistered offshore platforms is not allowed. (Source: Bangko Sentral ng Pilipinas, Memorandum M-2026-003 on dealing with virtual asset service providers (January 30, 2026))
- June 5, 2026: The BSP issued coin and token listing guidelines, with reserve and redemption considerations for fiat-backed tokens and a ban on listing privacy coins. (Source: Bangko Sentral ng Pilipinas, Memorandum M-2026-023, coin and token listing guidelines (June 5, 2026))
What the official sources leave open
The official sources leave these points open. Where one affects a payment, Toku confirms how it is handled for each person before the first payment.
- The details of the SEC's rules for crypto-asset service providers, and which offshore platforms are registered with it.
- How the Bureau of Internal Revenue values crypto received as contractor fees and taxes gains on crypto. We found no BIR rule written for crypto, and the fair-market-value rule we cite is written for employee compensation.
- Whether the BSP's January 2026 limit on retail access to unregistered offshore platforms applies to a contractor paid in crypto by a client abroad.
- Whether a stablecoin received from abroad counts as foreign exchange under the BSP's foreign exchange manual.
- Whether Congress will pass a digital assets law, and whether the BSP will lift its moratorium on new provider licences.
How Toku pays your team in the Philippines
Employees hired through Toku’s employer of record in the Philippines have their salary set, withheld and paid in local currency, with the USDC option for net pay arranged as described above through stablecoin payroll. Whether Toku can support a hire in the Philippines is confirmed before an offer. Contractors are paid through contractor management, which keeps invoices, approvals and USDC or USDT payment records together. Toku confirms the arrangement for each person before the first payment.
For the practical steps, see how to pay contractors in the Philippines. Compare costs on the pricing page and estimate transfer costs with the FX savings calculator.
Toku pioneered this approach: founded in 2020, it started with token payroll and is now an employer of record and global payroll provider in 100+ countries, paying teams in local currency or stablecoins. About Toku.
This guide is general information, not legal or tax advice. Rules on crypto, wages and foreign exchange change often and depend on the facts of each arrangement, so confirm your situation with a qualified local adviser before you pay anyone in crypto or stablecoins.