The Philippines Securities and Exchange Commission (SEC) issued an advisory naming 10 major crypto exchanges, including OKX, Bybit, KuCoin, Kraken and others, for operating without the required authorization under the country’s new crypto regulations.
The alert, published on Monday, warned that the platforms continued to offer or promote crypto services to Philippine users despite lacking registration under SEC Memorandum Circulars No. 4 and No. 5, which took effect on Tuesday.
“These platforms have no license, registration, or authorization from the SEC to operate in the Philippines or to solicit investments from the public,” the alert said. “Their actions are unauthorized and expose Filipino investors to significant risk,” it added.
Other exchanges flagged in the advisory included MEXC, Bitget, Phemex, CoinEx, BitMart and Poloniex. According to the SEC, these exchanges remained accessible in the country, with most maintaining an active local marketing presence.
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More crypto violators likely, says SEC
The SEC noted that the list may not include all violators and that other platforms providing similar services without proper registration or approval are also considered to be in breach of Philippine securities laws.
The alert said the 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.”
The SEC warned it would pursue legal and regulatory action, including cease and desist orders and criminal complaints against these platforms. The regulator also said it would work with tech platforms such as Google, Apple and Meta to restrict unauthorized marketing activities.
Last year, the Philippines SEC directed Google and Apple to take down Binance’s app from their respective stores for users in the country, citing concerns over investor protection. The regulator sent letters to both companies, urging them to block access to Binance apps in local marketplaces.
Cointelegraph reached out to the Philippines SEC, as well as major exchanges OKX, Bybit, KuCoin, Kraken and MEXC, for comment, but had not received a response by publication.
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Southeast Asia tightens rules on offshore exchanges
The Philippines is not the only Southeast Asian nation cracking down on unregistered crypto platforms. Indonesia and Thailand have also introduced stricter rules this year, targeting offshore exchanges that operate without local licenses.
In May, Thailand’s SEC ordered the blocking of five crypto exchanges, including Bybit and OKX, as part of efforts to combat illegal platforms and money laundering. The agency advised investors to withdraw their assets from these platforms before the shutdown.
Meanwhile, Indonesia has tightened its crypto tax policy, sharply raising rates on foreign platforms. Income tax on domestic exchange transactions increased from 0.1% to 0.21%, while trades on offshore platforms now face a fivefold hike, from 0.2% to 1%.
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