Philippines SEC Cracks Down on 10 Unlicensed Crypto Exchanges Including OKX and Bybit

The Philippine Securities and Exchange Commission (SEC) has issued a public warning against ten major cryptocurrency exchanges, including OKX, Bybit, KuCoin, and Bitget, for operating in the country without the required licenses [1]. This action marks a significant regulatory crackdown in the Philippines, a nation widely recognized for its high adoption rate of digital assets [1].

According to the SEC, these unregistered platforms pose serious risks to users, including potential financial losses without legal recourse, as well as exposure to fraud, market manipulation, identity theft, and involvement in money laundering and terrorist financing activities [1]. The regulator also emphasized the risk of these platforms being used for cross-border financial crimes, which could attract international scrutiny and potentially place the Philippines on a global financial watchlist [1].

The warning follows the SEC’s earlier move to block access to Binance’s website in the country. This suggests a pattern of regulatory enforcement, with similar actions possibly being taken against the listed exchanges [1]. In addition to blocking access, the SEC is also considering stricter measures such as cease-and-desist orders, criminal complaints, and international collaboration with major tech companies like Google, Apple, Meta, and TikTok to curb unauthorized promotional activities [1].

The regulatory environment in the Philippines reflects a growing trend in Asia, where authorities are increasingly tightening oversight of the cryptocurrency sector. The SEC’s actions highlight the government’s commitment to protecting investors and maintaining financial integrity in the face of rapid digital asset adoption [1].

This development is particularly notable given the country’s position as a top global crypto adopter, according to the 2024 Chainalysis report [1]. As the regulatory landscape continues to evolve, users are being urged to exercise caution and refrain from engaging with unregistered platforms that operate outside the bounds of Philippine securities law [1].

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[1] Philippines SEC targets major crypto exchanges for operating without licences (https://cryptoslate.com/philippines-sec-targets-major-crypto-exchanges-for-operating-without-licences/)