The Philippine SEC has reportedly issued a warning against ten unlicensed crypto exchanges, including OKX, Bybit, and Kraken. According to the SEC, these exchanges have been operating without the necessary authorization under the country’s new crypto regulations.
10 Crypto Exchanges Face Scrutiny in the Philippines
In the latest crypto regulatory development, the Philippine SEC has launched a crackdown on unregistered digital asset exchanges. These platforms include OKX, Bybit, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, and Poloniex. Commenting on these digital asset exchanges’ failure to adhere to the country’s licensing laws, the SEC stated,
These platforms have no license, registration, or authorization from the SEC to operate in the Philippines or to solicit investments from the public. Their actions are unauthorized and expose Filipino investors to significant risk.
Notably, the SEC claims that these platforms are operating in non-compliance with the SEC Memorandum Circulars No. 4 and No. 5, which took effect on Tuesday. As per the claim, the crypto exchanges are offering services to Filipino users without the required registration under the country’s crypto regulations.
More Crypto Exchanges to Face Scrutiny?
Further, the SEC warned that the list of non-compliant platforms is not exhaustive, and other unregistered entities offering similar services also risk violating Philippine securities laws. The SEC vowed to pursue legal and regulatory action, including working with Google, Apple, and Meta to curb unauthorized marketing by these platforms.
The notice stated,
These 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.
This move reflects the Philippine SEC’s regulatory crackdown on the crypto exchange Binance last year. In April 2024, the financial watchdog blocked Binance, restricting local users’ access and preventing them from withdrawing funds due to concerns over the platform’s unlicensed operations. The SEC also shut down Binance’s website and online trading platform in the Philippines with the help of the National Telecommunication Commission (NTC).
Philippines Aligns with Global Crypto Regulation
The Philippine SEC’s move reflects a growing global trend of stricter crypto regulation, with other countries also targeting unlicensed exchanges. For instance, the Thai SEC has sued OKX for allegedly operating without registration since 2021, echoing similar allegations made by the Philippines against the exchange.
In addition, South Korea has also raised concerns of licensing issues, targeting multiple digital asset exchanges like KuCoin, MEXC, Phemex, XT, CoinEx, BitMart, and Poloniex. The Financial Intelligence Unit (FIU) of South Korea directed Google to restrict access to 17 digital asset exchanges operating without licenses.
Nynu V Jamal
Nynu V Jamal is a Senior Journalist at CoinGape. She boasts more than 3 years of experience in content writing, with expertise in crypto and blockchain. She has contributed to platforms like CoinEdition and CryptoTale, demonstrating her proficiency in navigating the dynamic crypto landscape.
Beyond her journalistic pursuits, Nynu is a literary enthusiast, having served as an Assistant Professor of English Language and Literature. She is a Master’s degree holder in English Literature and a UGC NET qualifier. Her academic background has enabled her to publish research papers on literature, while also nurturing her creative side as a published poet.
Her creative side extends to music, crafts, and art, which she actively explores. Her unique blend of analytical and creative skills allows her to craft engaging stories that captivate audiences. Stay updated with Nynu on LinkedIn
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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