Philippine SEC warns against 10 unlicensed crypto exchanges, including Kraken and Bybit, citing investor risks and regulatory violations.
The Philippine Securities and Exchange Commission (SEC) has issued a strong warning against several cryptocurrency exchanges operating without proper authorization. On August 1, 2025, the SEC issued an official advisory listing the ten most significant platforms that have not registered as required by the new Crypto Asset Service Provider (CASP) regulations. These regulations started on July 5, 2025.
Crypto Exchanges Like Kraken, Bybit Breach Local Laws, SEC Says
Among the platforms mentioned in the advisory are OKX, Bybit, MEXC, Phemex, CoinEx, KuCoin, Bitget, BitMart, Poloniex, and Kraken. According to Manila Times, the SEC said that these exchanges are already providing services to Filipino users and are also carrying out marketing activities in the country without registration. This is a cause of major concern for investor safety and legality.
The SEC identified some of the risks associated with the utilization of unlicensed platforms. To begin with, investors might lose all their money without any legal support or action. Second, users can also become susceptible to fraud, identity theft, and market manipulation. Third, it lacks regulation, which can be used to launder money and fund terrorism since they do not adhere to the Anti-Money Laundering Act (AMLA).
According to the advisory, these exchanges are in contravention of Philippine securities laws by not having a license. It is the latest such enforcement action, as earlier in the year, the SEC ordered the geo-blocking of the Binance website after the exchange failed to comply. The Commission has put on record once and again that any platform providing crypto services to Filipinos without first registering is illegal.
It also stressed the fact that the list of ten platforms is not exhaustive. Other exchanges that provide similar services to the local users without registration are also violating the law. The SEC went on to state that these companies are neither licensed nor registered nor legally approved to undertake business in the country as well nor to mobilize investments with the populace.
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Unregistered Exchanges to Face Website Shutdowns, Criminal Charges
To address these concerns, the SEC is prepared to take firm action. Potential actions are to issue cease-and-desist orders, criminal proceedings, and shut down the websites and applications of exchanges that do not comply. The SEC is also to liaise with big tech corporations such as Google and Apple to remove unauthorized crypto-related advertisements.
According to CASP regulations, any crypto exchange is to be registered as a stock corporation and must correspond to a certain amount of capital. This will feature a minimum paid-up capital of PHP100 million (approximately 1.8 million dollars). These are all geared towards giving investor protection and establishing a more secure digital asset market in the Philippines.
SEC official Atty. Paolo Ong emphasized the need to create awareness and the education of investors. He pointed out that before committing to any deals, users have to ensure that a platform is licensed. The SEC encouraged citizens to trade through regulated exchanges, which include Coins.ph, PDAX, and Maya. These exchanges operate as Virtual Asset Service Providers (VASPs) registered with the Bangko Sentral ng Pilipinas (BSP) and follow national regulations.
The action denotes a wider trend of tightening crypto around the world. Although there are those who argue to adopt balanced approaches that permit innovation, governments in most countries are heightening supervision to guard consumers. In the Philippines, licensed platforms might be the safest option to enter a more active digital market.
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