On 1 August 2025, the Philippines’ Securities and Exchange Commission (SEC) issued a sweeping public advisory naming ten major global crypto exchanges as unauthorised to operate in the country. The list included well-known platforms such as OKX, Bybit, KuCoin, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, and Poloniex.

The SEC’s action highlights two major concerns: protecting investors from total fund loss and mitigating money laundering and terrorist financing risks. The move signals a firm stance: offshore crypto exchanges can no longer serve Filipino users without accountability or registration.

This article explores what the ban means for investors, the regulatory framework behind it, and the broader implications for the Philippines’ fast-growing crypto market.

From VASPs to CASPs: A New Era of Crypto Oversight

The SEC’s enforcement does not equate to an outright ban on cryptocurrency in the Philippines. Instead, it reflects a transition to a stricter licensing system for service providers.

In September 2022, the Bangko Sentral ng Pilipinas (BSP) imposed a three-year moratorium on new Virtual Asset Service Provider (VASP) applications. This freeze was intended to stabilise the market, allow regulators to review risks, and prepare a stronger framework. During this period, only already-licensed operators were permitted to continue.

By 2024, the BSP unveiled its updated Crypto-Asset Service Provider (CASP) Rules, aligning with international standards set by the Financial Action Task Force (FATF). These new rules raised the bar for compliance and investor protection.

Key CASP requirements include:

• Local registration – companies must formally incorporate their crypto services in the Philippines.
• Capital threshold – at least ₱100 million in paid-up capital, excluding digital assets.
• Physical presence – a staffed local office must be maintained.
• Fund segregation – client money must be separated from company funds.
• Trading safeguards – disclosure standards, listing rules, and strong cybersecurity protocols.

The ten offshore exchanges named by the SEC failed to meet these standards, triggering the August advisory.

What Risks Do Investors Face?

The SEC’s warning underlines real dangers for users who continue trading or holding assets on the flagged platforms. Risks fall into both financial/legal and operational categories.

Financial and legal risks:

• Funds are not protected from being misused by the exchange.
• Users have no legal recourse in Philippine courts if disputes arise.
• Greater vulnerability to insolvency, fraud, or sudden collapse.

Operational risks:

• Websites are already being blocked by major internet service providers such as PLDT and Smart.
• Mobile applications may soon be removed from Google Play and Apple’s App Store.
• Withdrawals could be suspended without prior notice, leaving investors unable to access funds.

Given these threats, the SEC recommends immediate steps: cease trading on unauthorised platforms, withdraw assets to either a licensed local exchange or a non-custodial wallet, and preserve transaction records for possible claims.

Licensed Crypto Platforms in the Philippines

The Philippines remains one of the most active crypto markets globally. In the 2024 Global Crypto Adoption Index by Chainalysis, the country ranked in the top 10 worldwide, thanks to strong retail use and the role of remittances.

To ensure investor safety while supporting innovation, the BSP and SEC maintain a list of licensed providers. These include Coins.ph, PDAX, Maya, Bloomsolutions, SurgePay, Moneybees, UnionBank, GoTyme Bank, XenRemit, and TopJuan Technologies.

Unlike offshore platforms, these licensed entities offer:

• Legal protection for users in disputes.
• Segregation of funds, ensuring client assets are safeguarded.
• Stable access, free from geo-blocking or app removals.
• Regulatory supervision, ensuring compliance with local and international standards.

This approach balances financial innovation with consumer protection, reinforcing the Philippines as a credible digital asset hub.

Regional and Global Context

The Philippines is not acting in isolation. Across Southeast Asia, regulators are tightening rules to rein in offshore crypto platforms.

• Thailand has already blocked Bybit and OKX.
• Indonesia has increased taxes on foreign crypto operators.

This regional convergence reflects a broader global trend: countries are moving towards regulated digital asset ecosystems, prioritising stability, security, and investor trust.

Global exchanges often adopt a selective compliance strategy, focusing on larger markets while neglecting smaller ones. For example, Bybit has prioritised compliance with Europe’s Markets in Crypto-Assets (MiCA) regulation but has not sought Philippine licensing. The SEC’s strong stance now forces exchanges to either invest in compliance or exit the market.

The Philippine SEC is also taking innovative steps in enforcement. Beyond website blocks, it has sought cooperation from Google and Apple to delist apps and cracked down on influencer-led promotions. A similar strategy against Binance in 2024 proved effective in curtailing access.

Crypto Adoption Drivers in the Philippines

Despite regulatory hurdles, crypto remains deeply embedded in Filipino financial culture. Several factors underpin adoption:

• Remittances: Millions of overseas Filipino workers send money home, and crypto offers faster, cheaper transfers.
• Play-to-earn (P2E) gaming: The Axie Infinity boom during the pandemic introduced digital assets to millions of retail users.
• Mobile-first economy: High smartphone penetration supports widespread use of wallets and exchanges.
• Limited banking access: With 44% of adults unbanked, crypto fills a gap in financial inclusion.

These factors suggest that crypto will remain a powerful force in the Philippines, but under a better-regulated environment.

A Safer, More Transparent Future

The SEC’s August 2025 advisory banning ten major offshore exchanges marks a turning point in Philippine crypto regulation. By pushing unlicensed operators out and encouraging compliance, regulators aim to create a market that is both innovative and safe for users.

With the BSP set to reopen licensing under the CASP framework in September 2025, new opportunities will emerge for both domestic and international players. While short-term disruptions, such as blocked access and withdrawal issues are inevitable, the long-term outlook is positive.

The Philippines is positioning itself not just as an active crypto market but as a regional leader in responsible digital finance. Whether global platforms adapt quickly or local players seize the moment, the country’s clear rules, regulatory oversight, and active user base could make it one of Asia’s most resilient and forward-looking crypto hubs.