Top global cryptocurrency exchanges are facing increasing legal risks in the Philippines after being accused of illegally targeting users and violating new stringent digital asset compliance rules.
The SEC of the Philippines warns that major cryptocurrency exchanges are operating illegally in this country.
The Securities and Exchange Commission of the Philippines (SEC) issued an advisory on August 4, warning investors about unregistered foreign cryptocurrency platforms that continue to serve Philippine users. The regulatory agency warned that some digital asset service providers are operating in the Philippines without valid licenses. The SEC of the Philippines stated that these platforms are offering cryptocurrency trading services, violating newly implemented compliance requirements. The advisory emphasized:
These rules apply to any individual or organization providing, promoting, or facilitating access to cryptocurrency trading venues or intermediary services such as buying, selling, and trading cryptocurrency derivatives.
The advisory has identified 10 exchanges currently violating domestic securities regulations: OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken. All are actively promoting services or still allowing users in the Philippines full access despite having no licenses issued by the SEC under Memorandum Circular No. 4 and No. 5, effective from July 2025.
The regulator also stated that 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 also considered to be operating in violation of Philippine securities laws."
The list of unlicensed cryptocurrency exchanges flagged by the SEC of the Philippines. Source: SEC of the Philippines
Following the previous geo-blocking of Binance, the SEC of the Philippines revealed that some other platforms still remain accessible and are engaging in unauthorized marketing targeting Philippine residents. This regulatory agency emphasized:
They continue to provide or market cryptocurrency services to the Philippine public without the required licenses or registrations.
In addition to concerns about investor protection, the Securities and Exchange Commission of the Philippines (SEC) also highlighted broader national risks posed by unregulated cryptocurrency activities. As these organizations operate outside the scope of the Anti-Money Laundering Act (AMLA), they are not subject to compliance control measures such as customer due diligence, record-keeping, or reporting suspicious transactions. The SEC warned that this lack of oversight could facilitate cross-border illegal financial activities and increase the risk of being placed on a gray list. Enforcement measures may include cease and desist orders, criminal prosecution, and coordination with technology companies to mitigate risks. In response, some cryptocurrency advocates have called for regulators to adopt a more collaborative compliance approach to encourage innovation and safer engagement in the digital asset space.