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) recently issued a warning to investors regarding unregistered offshore crypto platforms that are catering to Filipino users without proper authorization. The SEC highlighted that a number of digital asset service providers are flouting the newly implemented compliance regulations by offering crypto trading services in the country.
According to the SEC, these rules pertain to any individual or entity that facilitates access to crypto-asset trading venues or intermediation services such as buying, selling, and derivatives trading of crypto-assets.
The advisory specifically named 10 exchanges that are currently operating in violation of domestic securities laws: OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken. These exchanges are actively promoting their services or are accessible to Filipino users without the necessary license under Memorandum Circulars No. 4 and No. 5, which came into effect in July 2025.
Furthermore, the SEC cautioned that there may be additional cryptocurrency exchanges operating unlawfully in the Philippines, stating, “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.”
List of unlicensed crypto exchanges flagged by the Philippines’ SEC. Source: Philippine SEC
In light of the recent geo-blocking of Binance, the SEC revealed that several other platforms are still accessible and are actively engaging in unauthorized marketing directed at Filipino residents. The regulator stressed, “They continue to offer or market crypto-asset services to the Philippine public without the required registration or license.”
Aside from concerns regarding investor protection, the SEC also highlighted the broader national risks associated with unregulated crypto activities. Since these entities operate outside the purview of the Anti-Money Laundering Act (AMLA), they are not subject to compliance measures such as customer due diligence, recordkeeping, or reporting suspicious transactions. The lack of oversight could potentially facilitate cross-border illicit finance and increase the country’s susceptibility to gray-listing. The SEC mentioned that enforcement actions might include cease and desist orders, criminal proceedings, and collaboration with technology companies to minimize exposure. Some advocates in the crypto space have called for regulators to adopt a more collaborative compliance approach to promote innovation and safer participation in the digital asset industry.