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

The Securities and Exchange Commission (SEC) of the Philippines has intensified its regulatory scrutiny of unlicensed cryptocurrency exchanges, issuing warnings and enforcement threats against platforms including OKX, Bybit, MEXC, KuCoin, Kraken, and Bitget. These exchanges are accused of operating in the country without the necessary regulatory authorizations, thereby violating the country’s stringent digital asset laws [1]. The SEC has specifically highlighted the risks these platforms pose to investors, such as fraud, market manipulation, and identity theft [2].

The regulator has publicly identified OKX, Bybit, and MEXC in an investor alert, urging the public to avoid transacting with these unregistered services. It emphasized that the list is not exhaustive and that any platform offering similar services without proper licensing is considered to be operating illegally [3]. Enforcement measures under consideration include blocking access to these exchanges’ websites and mobile applications, issuing cease-and-desist orders, and pursuing criminal complaints [4].

A key concern raised by the SEC is the potential use of these platforms for illicit activities such as money laundering and terrorist financing. The regulator warned that such practices could lead to international scrutiny and place the Philippines on a global financial watchlist [5]. These actions align with broader regulatory efforts across Asia to tighten oversight of the cryptocurrency sector and mitigate associated risks [6].

The crackdown follows the SEC’s prior enforcement action against Binance, where access to the exchange’s website was blocked in the country. The same measures are now likely to be extended to the newly identified platforms [7]. In addition, the regulator is in communication with major tech firms such as Google, Apple, and Meta to remove promotional content for unregistered crypto services [8].

The Philippine market is among the most active in the world for cryptocurrency transactions, and the SEC’s actions aim to protect investors while aligning the country’s regulatory framework with international standards [9]. The regulator is also urging investors to conduct due diligence before engaging with any crypto platform and to report suspicious activities to help mitigate financial risks.

The full list of unlicensed exchanges targeted by the SEC is available in the regulator’s official press release. Investors are being warned not to trade or store assets on these platforms, as they lack proper compliance mechanisms such as anti-money laundering (AML) and counter-terrorist financing safeguards [2].

The ongoing enforcement efforts reflect the Philippines’ commitment to maintaining a secure and regulated financial ecosystem. The SEC’s actions are expected to reshape the crypto landscape in the country and serve as a model for other jurisdictions grappling with similar regulatory challenges.

Sources:

[1] Cointelegraph (https://cointelegraph.com/news/philippines-sec-warns-okx-bybit-kucoin-kraken-unregistered)

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

[3] CryptoRank (https://cryptorank.io/news/feed/ac605-philippines-sec-targets-major-crypto-exchanges-for-operating-without-licences)

[4] CoinCentral (https://coincentral.com/philippine-sec-calls-out-10-crypto-exchanges-for-operating-without-registration/)

[6] Coinedition (https://coinedition.com/philippines-sec-flags-10-major-crypto-exchanges-for-operating-without-license/)