Philippine SEC Flags 10 Unlicensed Crypto Exchanges
Philippine SEC Cracks Down on Unlicensed Crypto Exchanges
The Philippine Securities and Exchange Commission (SEC) has issued a public advisory against ten cryptocurrency exchanges operating without the required licenses. The warning, issued on August 1, 2025, names several prominent platforms and highlights the risks to Filipino investors.
Kraken, Bybit Among Exchanges Flagged
The SEC's advisory specifically calls out these exchanges:
- OKX
- Bybit
- MEXC
- Phemex
- CoinEx
- KuCoin
- Bitget
- BitMart
- Poloniex
- Kraken
The SEC asserts that these platforms are actively targeting Filipino users through marketing and service offerings without proper registration as Crypto Asset Service Providers (CASPs), as required by regulations that took effect on July 5, 2025.
Risks of Using Unlicensed Exchanges
The SEC outlined several key risks associated with using unregistered crypto exchanges:
- Loss of Funds: Investors may have no legal recourse in case of platform failure or fraud.
- Fraud and Theft: Increased vulnerability to scams, identity theft, and market manipulation.
- Money Laundering: Lack of regulatory oversight could facilitate money laundering and terrorist financing, violating the Anti-Money Laundering Act (AMLA).
The SEC emphasizes that providing crypto services to Filipinos without registration is a direct violation of Philippine securities laws. This action follows a prior order to geo-block Binance's website due to non-compliance.
Enforcement Actions Planned
The SEC plans to take strong action against non-compliant exchanges, including:
- Issuing cease-and-desist orders.
- Pursuing criminal charges.
- Shutting down websites and applications.
- Collaborating with tech companies like Google and Apple to remove unauthorized advertisements.
Under CASP regulations, crypto exchanges must register as stock corporations with a minimum paid-up capital of PHP 100 million (approximately $1.8 million). This is intended to enhance investor protection and market security.
Atty. Paolo Ong of the SEC stressed the importance of investor education, urging users to verify platform licenses before engaging in crypto transactions. He highlighted regulated exchanges like Coins.ph, PDAX, and Maya as safer alternatives, as these operate as Virtual Asset Service Providers (VASPs) registered with the Bangko Sentral ng Pilipinas (BSP) and adhere to national regulations.
This enforcement action reflects a global trend towards stricter crypto regulation aimed at protecting consumers. While some advocate for balanced approaches to foster innovation, governments worldwide are increasing oversight of the digital asset space.