Philippines SEC Warns 5 Major Unlicensed Crypto Exchanges Over Legal and Financial Risks

The Philippine Securities and Exchange Commission (SEC) has issued a formal warning against several unlicensed cryptocurrency exchanges operating within the country, including OKX, Bybit, KuCoin, Kraken, and Bitget [1]. These platforms are accused of offering services without the necessary regulatory approval, exposing investors to significant financial and legal risks [2]. In a recent advisory, the regulator highlighted concerns over potential fraud, identity theft, market manipulation, and the absence of anti-money laundering (AML) and counter-terrorism financing safeguards [3].

The SEC emphasized that its list of flagged exchanges is not comprehensive, as other unregistered platforms offering similar services are also in violation of local securities laws [3]. The public has been advised to refrain from engaging with these platforms due to the limited legal recourse available in the event of disputes or financial losses. The regulator has also requested cooperation from major technology firms such as Google, Apple, Meta, and TikTok to restrict access to the websites and mobile applications of these exchanges and to remove promotional content [1].

This move follows the SEC’s broader campaign, launched in March 2024, against unregulated crypto platforms. Previously, local exchanges such as MiTrade and OctaFX were banned, and later, Binance faced similar restrictions [1]. The commission has indicated that similar measures will be applied to the newly identified platforms. Enforcement actions may include cease-and-desist orders and criminal complaints against violators [2].

The increased scrutiny reflects the Philippines’ growing role in the global cryptocurrency landscape. A 2024 Chainalysis report noted the country as one of the top adopters of crypto globally [3]. The SEC’s actions aim to ensure regulatory alignment with international standards and to prevent the nation from being listed on international financial watchlists due to insufficient oversight. The regulator is urging investors to conduct due diligence before engaging with any crypto platforms and to report suspicious activities to help mitigate systemic financial risks.

Source:

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

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

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