The Philippines’ Securities and Exchange Commission has named ten crypto exchanges, including tier-1 platforms like Bybit and OKX, for operating without registration and warned of potential enforcement action under its new regulatory framework.
Summary
- The Philippines SEC has named ten crypto exchanges for operating without proper registration.
- Advisory warns that these platforms may face enforcement actions for violating new CASP rules effective July 5.
- Potential penalties include app store takedowns, site blocking, and criminal charges.
In an advisory published on Aug. 4, the securities regulator said these platforms had failed to comply with the country’s newly enacted Crypto Asset Service Provider (CASP) rules, which mandate formal registration, corporate presence, and anti-money laundering safeguards.
Which exchanges have been flagged by the SEC?
The advisory specifically lists the following exchanges as accessible and active in the Philippines: OKX, Bybit, MEXC, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex, and Kraken.
The SEC noted that many of these platforms continue to maintain a strong marketing presence targeting Filipino users despite lacking a license or registration.
While this list names ten prominent platforms, the regulator emphasized that the advisory is not exhaustive. Any entity offering crypto-asset services to Philippine users without proper registration is considered to be operating illegally under local securities laws.
According to the SEC, the unauthorized operations of these platforms expose Filipino investors to a range of risks, including total loss of funds, fraud, market manipulation, and identity theft. Without regulatory oversight, users have no legal recourse in the event of loss or misconduct.
The SEC also warned that such platforms could be used for money laundering or terrorist financing. As unregistered entities, these exchanges are not subject to the Anti-Money Laundering Act requirements that apply to licensed Virtual Asset Service Providers in the Philippines.
Is the SEC threatening a ban?
The SEC has not explicitly declared an outright ban on the ten exchanges, but its language and recent history suggest that strong enforcement measures are imminent.
The Commission stated that it may pursue a wide range of enforcement actions against violators.
These actions may include cease and desist orders, criminal complaints, blocking access to websites and mobile applications, and coordination with global tech platforms, such as Google, Apple, Meta, and TikTok, to remove unauthorized crypto promotions targeting Philippine users.
These are not idle threats. In fact, the Commission has already followed through with similar steps in its crackdown on Binance, the world’s largest cryptocurrency exchange.
In late 2023, the SEC found Binance to be offering unregistered securities and operating as an unlicensed broker. The regulator gave users 90 days to exit the platform. By March 2024, the National Telecommunications Commission had blocked access to Binance’s website.
These actions against Binance now appear to serve as a blueprint for how the SEC may move forward with other platforms named in the latest advisory.
While the regulator has stopped short of using the word “ban,” the precedent set by the Binance case indicates that the consequences for noncompliance are functionally equivalent to one.
For the exchanges named, failure to secure proper authorization under the CASP framework may soon result in removal from the Philippine market altogether.
Philippines starts regulating crypto exchanges
The SEC advisory did not specify a new deadline for compliance but emphasized that the Crypto Asset Service Provider (CASP) rules had already taken effect on July 5, 2025.
Issued earlier this year under SEC Memorandum Circular Nos. 4 and 5, Series of 2025, the framework requires all crypto-asset service providers offering services in the Philippines to comply with registration, disclosure, and operational standards from that date onward.
Under the new rules, CASPs must register as domestic corporations with a minimum paid-up capital of ₱100 million (~US$1.8 million), maintain a physical office within the country, and submit detailed documentation on their digital asset offerings and business operations.
Any entity continuing to operate without registration after July 5 is now considered in direct violation of Philippine securities laws and subject to immediate enforcement action.
