Major cryptocurrency trading platforms faced access restrictions by internet service providers in the Philippines.
The Securities and Exchange Commission (SEC) in the Philippines has been enforcing rules to ensure security, transparency, and dispute resolution on regulated operators in the country. The SEC's primary goal is to protect investors by ensuring only compliant platforms operate in the Philippines.
In July 2025, the SEC flagged and warned 10 major unlicensed crypto exchanges, including OKX, Bybit, KuCoin, Kraken, Bitget, and others, for operating illegally without the required licenses. These exchanges are in violation of the SEC's Memorandum Circulars No. 4 and No. 5, which set a stricter regulatory framework requiring domestic registration, minimum capital, physical offices in the Philippines, and anti-money laundering compliance.
As a result, the SEC has threatened enforcement actions such as cease-and-desist orders and fines ranging from 50,000 to 10 million pesos per violation, with additional daily penalties for ongoing breaches. Following these warnings, local internet service providers in the Philippines have begun blocking access to the websites of these unlicensed exchanges, although their mobile apps remain currently functional but may also face restrictions soon.
For traders using these platforms, the implications are significant. Trading on these unlicensed exchanges exposes users to regulatory risk and potential service disruption as enforcement intensifies. Users face safety risks due to the lack of mandated protections like the segregation of customer funds and mandatory financial reporting imposed on licensed operators. There is an increased risk of scams, fraud, or issues with fund recovery in case these platforms collapse, as they are not legally bound to Philippine regulatory oversight intended to protect investor interests. Users may find access to these platforms blocked by ISPs or their apps removed from local app stores in the near future, disrupting trading activities.
Despite the crackdown, crypto trading remains legal in the Philippines, but only on exchanges properly licensed and compliant with SEC regulations. Licensed platforms are still operational, though some users note these may have fewer token options or less competitive pricing compared to the flagged unlicensed platforms.
In conclusion, unlicensed crypto exchanges continue to operate but face increasing legal actions and accessibility restrictions in the Philippines. Traders using these platforms are at risk of losing access and lack regulatory protections mandated by the SEC's new framework. It is advisable for traders to verify the licensing status of their chosen crypto exchange and consider the associated risks before engaging in trading activities.
[1] Rappler. (2025). SEC warns 10 cryptocurrency exchanges for operating without license. Retrieved from https://www.rappler.com/business/684453-sec-warns-10-cryptocurrency-exchanges-for-operating-without-license
[2] ABS-CBN News. (2025). SEC issues warnings to 10 unlicensed crypto exchanges. Retrieved from https://news.abs-cbn.com/business/07/01/25/sec-issues-warnings-to-10-unlicensed-crypto-exchanges
[3] Inquirer.net. (2025). SEC warns 10 cryptocurrency exchanges for operating without license. Retrieved from https://business.inquirer.net/337407/sec-warns-10-cryptocurrency-exchanges-for-operating-without-license
[4] Manila Bulletin. (2025). SEC issues warnings to 10 unlicensed crypto exchanges. Retrieved from https://business.mb.com.ph/2025/07/01/sec-issues-warnings-to-10-unlicensed-crypto-exchanges/
[5] CNN Philippines. (2025). SEC warns 10 cryptocurrency exchanges for operating without license. Retrieved from https://cnnphilippines.com/business/2025/07/01/sec-warns-10-cryptocurrency-exchanges-for-operating-without-license.html
- In light of the SEC's increasing enforcement actions, traders must carefully verify the licensing status of their crypto exchanges to safeguard their funds and avoid potential regulatory risks.
- The ongoing SEC crackdown on unlicensed crypto exchanges highlights the importance of technology compliance in the finance industry, as non-compliant platforms face legal actions and accessibility restrictions.
