Philippine SEC Targets 10 Unlicensed Crypto Exchanges Including OKX and Bybit

The Philippine Securities and Exchange Commission (SEC) has launched a regulatory crackdown targeting ten major offshore cryptocurrency exchanges, including OKX, Bybit, Kraken, Bitget, and MEXC, for operating without local authorization. This enforcement action, announced in August 2025, comes under the newly implemented SEC Memorandum Circulars No. 4 and No. 5, which require all cryptocurrency platforms to register with the regulator before offering services to Filipino users [1][2]. The targeted exchanges have been accused of violating local laws by providing access to unregistered investment products, thereby exposing local investors to financial and legal risks, including fraud and money laundering [3][4].

The SEC has warned that these unlicensed platforms could face a range of penalties, including cease-and-desist orders, criminal complaints, and collaboration with technology firms like Google, Apple, and Meta to block unauthorized access [5]. The regulator has not ruled out the possibility that other unregistered platforms may also be subject to similar actions. This move echoes previous regulatory efforts, such as the 2024 enforcement against Binance for similar violations [6].

The crackdown is expected to significantly affect the targeted exchanges' operations in the Philippines, a country known for its high levels of crypto adoption. Analysts suggest that these platforms may experience a decline in local user numbers and trading volumes as a result of restricted access. In the past, similar regulatory actions have led to shifts in user behavior, with some traders migrating to decentralized exchanges (DEXs) or compliant platforms [7]. The broader impact could also extend to Southeast Asia, where other regulators, including those in Thailand and South Korea, have taken similar steps against unregistered crypto exchanges [8].

From a regulatory perspective, the Philippine SEC’s actions underscore a growing emphasis on investor protection and market integrity. By enforcing compliance with local laws, the regulator is reinforcing the idea that only licensed entities can operate within the country's financial framework. This is expected to create a more secure and transparent environment for investors while also encouraging crypto platforms to adhere to regulatory standards before entering the market [9].

Source:

[1] AInvest - https://www.ainvest.com/news/philippines-sec-cracks-10-unlicensed-crypto-exchanges-including-okx-bybit-2508/

[2] AInvest - https://www.ainvest.com/news/philippines-sec-warns-5-major-unlicensed-crypto-exchanges-legal-financial-risks-2508/

[3] Coindoo - https://coindoo.com/philippines-sec-targets-major-crypto-exchanges-in-regulatory-crackdown/

[4] XT.com - https://www.xt.com/en/blog/post/philippines-sec-cracks-down-on-10-offshore-crypto-exchanges-in-regulatory-push

[5] CoinGape - https://coingape.com/philippine-sec-warns-unregistered-crypto-exchanges-warns-okx-bybit-and-kraken/

[7] Coinpedia - https://coinpedia.org/news/sec-targets-10-crypto-exchanges-in-the-philippines/