SEC Flags 10 Unregistered Crypto Exchanges, Eyes Website Blocking

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[Developing Story] The Philippines’ Securities and Exchange Commission (SEC) has issued a fresh warning against a number of unregistered cryptocurrency platforms, saying they are actively targeting Filipino users without the necessary licenses and exposing investors to significant risk.

SEC Flags Unregistered Crypto Exchanges

In an investor advisory dated August 1, the SEC named 10 platforms, including OKX, Bybit, KuCoin, and Kraken, that are accessible in the Philippines and, in many cases, maintain an active local marketing presence.

• These platforms, the SEC said, have failed to register under its recently enacted crypto rules, officially known as the SEC CASP Rules and Guidelines.

“These platforms have no license, registration, or authorization from the SEC to operate in the Philippines or to solicit investments from the public.”

Securities and Exchange Commission

SEC Cites Risk to Filipino Investors

The regulator said there are several risks to Filipino investors using unregistered services, including:

• potential total loss of funds,
• lack of legal recourse,
• exposure to fraud or identity theft.

List of Crypto Exchanges Flagged by the SEC

The list of flagged platforms includes the following. (This list is taken from the SEC advisory that can be viewed at the end of the article):

The SEC emphasized that the list is not exhaustive, and any platform operating without proper registration is subject to enforcement action.

Concerns About National Security

The advisory also raised concerns about national security, warning that unauthorized crypto platforms pose high risks for money laundering and terrorist financing. Without proper anti-money laundering controls, these services “create serious vulnerabilities” that could jeopardize the country’s efforts to comply with international standards, the Commission added.

SEC to Pursue Cease-and-Desist, Website Blocking

The SEC said it may pursue a range of enforcement measures, including:

• cease-and-desist orders,
• website blocking,
• criminal complaints,
• takedown request with tech companies such as Google and Meta

The Commission cited previous enforcement action to geo-block Binance in the Philippines.

Full Copy of SEC Advisory:

Below is the copy of the advisory in full:

The Securities and Exchange Commission (SEC) warns the public against engaging with unregistered entities and online platforms that offer crypto-asset services to Philippine residents without the required registration or authorization from the Commission, as mandated under SEC Memorandum Circular No. 4, Series of 2025 (SEC CASP Rules), and SEC Memorandum Circular No. 5, Series of 2025 (SEC CASP Guidelines), which took effect on 05 July 2025.

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.

Following the Commission’s previous enforcement action which led to the geo-blocking of Binance’s website, the SEC has identified other platforms that are similarly situated — that is, they continue to offer or market crypto-asset services to the Philippine public without the required registration or license.

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.

These platforms have no license, registration, or authorization from the SEC to operate in the Philippines or to solicit investments from the public. Their actions are unauthorized and expose Filipino investors to significant risk, including:

• Total loss of funds
• No legal recourse
• Exposure to fraud, market manipulation, and identity theft

High Risk for Money Laundering and Terrorist Financing

The Commission likewise warns the public that unregistered crypto-asset platforms may be exploited for money laundering and terrorist financing (ML/TF). Under Philippine law and the Anti-Money Laundering Act (AMLA), Virtual Asset Service Providers (VASPs) are considered covered persons and are required to implement robust controls including customer due diligence, suspicious transaction reporting, and recordkeeping.

However, unregistered platforms often operate without effective AML systems, and are not subject to monitoring by Philippine regulators. This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force (FATF). Continued public access to such platforms may expose the country to cross-border illicit finance and reputational risks, including concerns related to gray-listing.

What You Should Do

• DO NOT INVEST OR TRADE through platforms that are not registered with the SEC.
• Be cautious of crypto promotions from influencers, social media posts, or mobile apps targeting Filipino users.
• Report any unauthorized offering, selling, or marketing of crypto-assets to:
  1. epd@sec.gov.ph – Enforcement and Investor Protection Department
  2. eipd-cybercrime@sec.gov.ph – Cyber and Forensics Division
  3. For registration and licensing inquiries, contact: casp@sec.gov.ph

The SEC Will Take Enforcement Action

The Commission shall, motu proprio or upon complaint, take legal and regulatory action against violators, which may include:

• Issuance of Cease and Desist Orders
• Requesting blocking of access to websites and applications
• Filing of criminal complaints under the Securities Regulation Code (SRC) and the Financial Products and Services Consumer Protection Act (FCPA)
• Coordinating with global platforms (e.g., Google, Apple, Meta, TikTok) to remove active unauthorized marketing activities
• Other appropriate enforcement action as deemed necessary

This Investor Alert is issued in pursuit of the Commission’s statutory mandate to protect investors and ensure market integrity.

For the guidance of the public.

Makati City, 1 August 2025.

This article is published on BitPinas: Philippines SEC Flags 10 Unregistered Crypto Platforms, Warns of Enforcement Action

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