Philippine SEC Warns 10 Unlicensed Crypto Exchanges Operating Illegally

The Philippine Securities and Exchange Commission (SEC) has issued a public advisory highlighting ten cryptocurrency exchanges that continue to operate within the country despite lacking the required regulatory licenses under the nation’s new digital asset compliance regime, which came into effect in July 2025 [3]. The exchanges named include OKX, Bybit, Mexc, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex, and Kraken. The SEC has explicitly stated that these platforms are offering trading services—ranging from spot and derivatives trading to promotional activities—without adhering to the legal requirements established under Memorandum Circulars No. 4 and No. 5.

The advisory clarifies that the rules apply to any entity or individual that facilitates access to crypto-asset trading venues or offers related services within the Philippines. The regulator emphasized that these platforms operate outside the framework of the Anti-Money Laundering Act (AMLA), which means they are not required to implement customer due diligence, maintain transaction records, or report suspicious activities [3]. This absence of oversight raises concerns over the potential misuse of crypto services for illicit financial activities and increases the country’s vulnerability to being placed on international gray lists.

The Philippine SEC also noted that its list is not exhaustive, warning that other unregistered platforms providing similar services to the public remain in violation of local securities laws. The agency has indicated that enforcement measures may include cease-and-desist orders, criminal proceedings, and collaboration with technology companies to limit the platforms’ reach within the country [3].

The regulatory action follows earlier efforts to restrict access to Binance, which had previously been geo-blocked in the country. The continued presence of these 10 exchanges, despite repeated warnings, signals a persistent challenge in enforcing digital asset compliance. The SEC has urged these entities to either apply for the necessary regulatory approvals or withdraw their services from the Philippine market.

Industry observers highlight that the SEC’s intervention aligns with a broader global trend of increased regulatory scrutiny in the crypto space. As digital assets continue to grow in popularity and value, governments are taking a more proactive stance to mitigate risks such as fraud, market manipulation, and money laundering. The Philippine SEC’s enforcement approach signals its intent to bring digital asset operators under the same compliance standards as traditional financial institutions.

At the same time, some within the crypto sector have called for a more balanced regulatory approach that fosters innovation while ensuring investor protection. They argue that excessive restrictions could stifle the growth of a sector that holds significant economic potential. However, the SEC’s current stance appears to prioritize stability and legal certainty over rapid expansion.

The advisory also serves as a reminder to investors to exercise due diligence when engaging with any digital asset platform. The SEC has encouraged the public to verify the regulatory status of any exchange they interact with to avoid potential financial losses. As the market continues to evolve, regulatory clarity and enforcement will be key to building trust and ensuring the long-term viability of the crypto industry in the Philippines.

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[2] White House set to unveil closely watched crypto policy (https://www.aol.com/news/white-house-set-unveil-closely-100450632.html)

[3] THE Securities and Exchange Commission (SEC) has issued an advisory on ten cryptocurrency platforms that it said are operating without the necessary (https://www.magzter.com/PH/Philstar-Daily-Inc./Business-World-Philippines/Newspaper?srsltid=AfmBOoobq_D85dcQypWWilDkhfxAhf9EYIfEDDRa7MSMvpGyetWY1qEZ)