Philippines to Shut Unlicensed Crypto Exchanges by July 2025

The Philippines Securities and Exchange Commission (SEC) has ordered the shutdown of several major global cryptocurrency exchanges for operating without the required local licenses under the country’s updated digital asset regulatory framework. Exchanges including OKX, Bybit, KuCoin, and Kraken are among those targeted, with the enforcement set to take effect under the revised rules by July 2025. The SEC has issued repeated warnings to these platforms, emphasizing that their continued operations violate existing legal standards and expose users to risks such as fraud and data breaches [1][2][3].

The regulatory action is part of a broader crackdown on unlicensed operators and reflects the Philippines’ growing emphasis on investor protection and market integrity. The country’s digital asset sector has expanded rapidly in recent years, and the SEC’s move signals a shift toward tighter oversight to manage associated risks. The agency has not yet specified enforcement timelines but has indicated that further actions may follow, depending on compliance progress [1][3].

Notably, the targeted exchanges have not yet issued public responses to the regulatory demands. Figures such as Lennix Lai of OKX and Ben Zhou of Bybit have remained silent on the matter, leaving uncertainty about how the platforms will adapt to the new requirements [1]. The SEC chairperson, Emilio B. Aquino, stated that the exchanges continue to market crypto-asset services to the public without the necessary licensing, violating the law [1].

The potential shutdown of these platforms could significantly impact trading activity and liquidity for major cryptocurrencies such as BTC, ETH, and altcoins in the region. Historically, similar regulatory actions in countries like Thailand and Indonesia have led to user migration toward decentralized and peer-to-peer trading platforms, which are not subject to centralized regulatory control [1].

This development aligns with a wider regional trend of increasing regulatory scrutiny of the crypto sector. Regulators across Southeast Asia are prioritizing compliance and transparency, balancing the need for innovation with the imperative to protect investors. For now, the Philippines’ actions suggest a firm stance on enforcing legal boundaries to ensure a more structured and secure trading environment [2].

Industry observers suggest that the regulatory pressure could lead to market consolidation, with only licensed platforms remaining active. However, it may also limit access for users accustomed to the services of these global exchanges. As more jurisdictions adopt stringent oversight measures, operators must adapt to meet evolving standards, ensuring compliance with local financial laws [3].

Source: [1] Philippines SEC Warns OKX, Bybit, KuCoin, Kraken Unregistered (https://cointelegraph.com/news/philippines-sec-warns-okx-bybit-kucoin-kraken-unregistered)

[2] Philippine SEC Flags 10 Unlicensed Crypto Exchanges for Regulatory Violations (https://www.livebitcoinnews.com/philippine-sec-flags-10-unlicensed-crypto-exchanges-for-regulatory-violations/)

[3] Philippines Cracks Down on Unlicensed Crypto Exchanges (https://coinedition.com/philippines-sec-flags-10-major-crypto-exchanges-for-operating-without-license/)