Top global crypto exchanges face mounting legal peril in the Philippines after being accused of illegally targeting users and violating strict new digital asset compliance rules.
Philippine SEC Flags Major Crypto Exchanges Operating Illegally in the Country
The Philippine Securities and Exchange Commission (SEC) published an advisory on Aug. 4, alerting investors about unregistered offshore crypto platforms that continue to serve Filipino users. The regulator warned that a number of digital asset service providers are operating in the country without proper authorization. These platforms, the Philippine SEC stated, are offering crypto trading services in violation of newly implemented compliance requirements. The advisory stressed:
These rules apply to any person or entity that offers, promotes, or facilitates access to crypto-asset trading venues or intermediation services such as buying, selling, and derivatives trading of crypto-assets.
The advisory identified 10 exchanges currently violating domestic securities regulations: OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken. All are either actively promoting services or remain fully accessible to users within the Philippines despite lacking any SEC-issued license under Memorandum Circulars No. 4 and No. 5, which took effect in July 2025.
The regulator additionally said other cryptocurrency exchanges may also be in violation, noting: “This list is not exhaustive. Other platforms offering similar services to the Philippine public without registration or SEC approval are likewise considered to be operating in violation of Philippine securities laws.”
Following the earlier geo-blocking of Binance, the Philippine SEC disclosed that several other platforms remain accessible and are engaging in unauthorized marketing activities directed at Philippine residents. The regulator emphasized:
They continue to offer or market crypto-asset services to the Philippine public without the required registration or license.
Beyond investor protection concerns, the Philippine SEC underscored the broader national risks posed by unregulated crypto activity. Because these entities operate outside the scope of the Anti-Money Laundering Act (AMLA), they are not subject to compliance controls such as customer due diligence, recordkeeping, or suspicious transaction reporting. The SEC warned that this lack of oversight may enable cross-border illicit finance and heighten the country’s vulnerability to gray-listing. Enforcement actions may include cease and desist orders, criminal proceedings, and coordination with tech firms to curb exposure. In response, some crypto proponents have urged regulators to adopt a more collaborative compliance approach to encourage innovation and safer engagement in the digital asset sector.
Author: Kevin Helms
Source: Bitcoin
Reviewed By: Editorial Team
