Unregistered crypto firms warned by Philippines SEC
The Philippines’ Securities and Exchange Commission (SEC) has warned Filipinos against using unregistered online platforms that continue to offer crypto-asset services without proper registration or authorisation. In an advisory, the SEC reiterated that all persons or entities providing, promoting, or facilitating crypto-asset trading services must comply with the existing laws.
“The SEC warns the public against engaging with unregistered entities and online platforms that offer crypto-asset services to Philippine residents,” the Commission stated.
Following Binance crackdown, more violators identified
The SEC’s latest advisory follows its enforcement action, which led to the geo-blocking of Binance’s website. According to the Commission, other platforms are “similarly situated”—that is, they continue to operate or market crypto services in the Philippines without the necessary licence. The list includes OKX, Bybit, MEXC, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex, and Kraken.
“These platforms have no licence, registration, or authorisation from the SEC to operate in the Philippines or to solicit investments from the public,” the advisory said. The SEC added that these platforms remain accessible in the country, with many actively promoting their services to Filipino users. “This list is not exhaustive,” it noted. “Other platforms offering similar services without SEC approval are likewise considered to be operating in violation of Philippine securities laws.”
Investors face ‘dangers’
The SEC emphasised the dangers of engaging with these unregistered entities. Filipino investors may face the total loss of their funds, have no legal recourse in case of disputes, and be exposed to fraud, market manipulation, and identity theft. “Their actions are unauthorised and expose Filipino investors to significant risk,” the Commission said.
The advisory also raised concerns over money laundering and terrorism financing. According to the SEC, Virtual Asset Service Providers (VASPs) are considered “covered persons” under the Anti-Money Laundering Act (AMLA).
“Unregistered platforms often operate without effective AML systems and are not subject to monitoring by Philippine regulators,” the SEC stated. “This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force (FATF).” The Commission warned that continued public access to such services may increase the country’s exposure to illicit finance and reputational risks, including concerns related to the FATF grey listing.
In February, the FATF removed the Philippines from its ‘grey list.’ The local government credited the move to President Ferdinand Marcos Jr.’s decision to ban Philippine Offshore Gaming Operators (POGOs). FATF monitors countries for deficiencies in anti-money laundering and counter-terrorism financing measures.
Public urged to avoid unregistered crypto services
To mitigate the risks, the SEC advised the public not to engage with these platforms. “Do not invest or trade through platforms that are not registered with the SEC,” the advisory stated. The public is also encouraged to be cautious of crypto promotions targeting Filipinos through social media, influencers, or mobile apps.
The Commission warned that it will take enforcement action against violators. Legal actions may include the issuance of cease-and-desist orders, requests to block access to websites and apps, and the filing of criminal complaints. The SEC said it will also coordinate with global platforms such as Google, Apple, Meta, and TikTok to remove unauthorised marketing materials.
