The Securities and Exchange Commission (SEC) of the Philippines has flagged ten cryptocurrency exchanges, including prominent ones like Bybit and OKX, for operating without the required registration and has issued warnings of potential enforcement actions under its updated regulatory framework.
Summary
- The SEC in the Philippines has identified ten cryptocurrency exchanges for failing to comply with registration requirements.
- The advisory indicates that these platforms may face enforcement actions for violating the newly established CASP rules, which became effective on July 5.
- Possible consequences include removals from app stores, blocking of websites, and criminal charges.
In an advisory released on August 4, the regulatory authority stated that these platforms have not complied with the recently introduced Crypto Asset Service Provider (CASP) regulations, which necessitate formal registration, a corporate presence, and anti-money laundering protocols.
Which exchanges have been singled out by the SEC?
The advisory specifically lists the following exchanges as currently operational and accessible in the Philippines: OKX, Bybit, MEXC, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex, and Kraken.
The SEC emphasized that numerous platforms are actively promoting their services to Filipino users despite lacking the necessary licenses or registrations.
While this list highlights ten notable platforms, the regulator clarified that this advisory is not exhaustive. Any entity providing crypto-asset services to users in the Philippines without the required registration is considered to be operating illegally under local securities legislation.
The SEC warned that the unauthorized operations of these platforms pose several risks to Filipino investors, including financial loss, fraud, market manipulation, and identity theft. In the absence of appropriate regulatory oversight, users lack legal recourse in the event of loss or misconduct.
Furthermore, the SEC cautioned that these platforms could potentially enable money laundering or terrorist financing. As unregistered entities, these exchanges are not subject to the Anti-Money Laundering Act requirements that pertain to licensed Virtual Asset Service Providers in the Philippines.
Is the SEC hinting at a ban?
While the SEC has not explicitly declared that it will ban the ten exchanges, its language and recent actions suggest that stringent enforcement measures may soon follow.
The Commission highlighted that it may pursue a range of enforcement actions against violators.
These actions could encompass cease and desist orders, criminal complaints, blocking access to websites and applications, and working with major tech companies such as Google, Apple, Meta, and TikTok to eliminate unauthorized crypto promotions targeted at Philippine users.
These warnings are significant; the Commission has already taken similar steps against Binance, the world’s largest cryptocurrency exchange.
In late 2023, the SEC found that Binance was offering unregistered securities and operating as an unlicensed broker. Users were given a 90-day period to withdraw their funds from the platform. By March 2024, the National Telecommunications Commission had restricted access to Binance’s website.
The actions taken against Binance may serve as a precedent for how the SEC intends to proceed with the other platforms mentioned in the recent advisory.
While the regulator has not explicitly used the word “ban,” the precedents set by the Binance case indicate that the repercussions for non-compliance are essentially the same.
If the mentioned exchanges fail to obtain the appropriate authorization under the CASP framework, they may soon find themselves entirely excluded from the Philippine market.
Philippines begins regulating cryptocurrency exchanges
The SEC advisory did not provide a new deadline for compliance but reiterated that the Crypto Asset Service Provider (CASP) regulations became effective on July 5, 2025.
Established earlier this year under SEC Memorandum Circular Nos. 4 and 5, Series of 2025, this framework requires all crypto-asset service providers operating within the Philippines to comply with registration, disclosure, and operational standards as of that date.
Under the new regulations, CASPs must register as domestic corporations with a minimum paid-up capital of ₱100 million (~US$1.8 million), maintain a physical presence in the country, and submit detailed documentation concerning their digital asset offerings and business practices.
Any entity that continues to operate without registration after July 5 is now considered to be in direct violation of Philippine securities laws and may face immediate enforcement actions.
