Key Takeaways
- The Philippines’ Securities and Exchange Commission (SEC) has intensified its stance.
- In August 2025, it issued an advisory against ten major unregistered platforms, including OKX, Bybit, KuCoin, and Kraken.
- Remittances remain a core driver of crypto adoption in the Philippines, with blockchain platforms offering lower fees than banks.
- The new CASP framework and stricter oversight aim to balance innovation, competition, and consumer protection.
On August 1, 2025, the SEC issued a public investor warning against ten crypto platforms in the Philippines, including:
- OKX
- Bybit
- KuCoin
- Kraken
- MEXC
- Bitget
- Phemex
- CoinEx
- BitMart
- Poloniex
The agency cited two main concerns for banning these crypto exchanges: protecting investors from total fund loss and reducing risks of money laundering or terrorist financing.
The SEC signaled that offshore exchanges can no longer operate without accountability by publicizing the names.
This article explains how the new rules work, what risks Filipino investors face, and why the move is part of a shift toward a safer, more sustainable market.
From VASPs to CASPs: Understanding the New Crypto Framework in the Philippines
The Bangko Sentral ng Pilipinas (BSP) introduced a three-year moratorium on new Virtual Asset Service Provider (VASP) applications in 2022.
This means the SEC’s actions do not outright prohibit cryptocurrency.
Instead, they enforce the Crypto-Asset Service Provider (CASP) Rules, which require any platform offering crypto services in the Philippines to register, hold capital, and maintain a local presence.
This approach aims to protect investors from risks like fraud and fund loss while aligning the country with international standards.
During this pause, only existing licensed providers were allowed to operate. The goal was to stabilize the market, review risks, and prepare an updated licensing system.
Under the revised framework, VASPs will transition into CASPs. The BSP’s rules align with international standards, including the Financial Action Task Force (FATF) recommendations.
The framework requires providers to meet strict capital, cybersecurity, and risk management requirements.
BSP Moratorium Timeline
| Event |
Date |
Details |
| BSP issues moratorium |
September 2022 |
Halted new VASP applications to strengthen oversight |
| Transition period |
2022–2025 |
Existing VASPs continued operations under old rules |
| CASP rules announced |
2024 |
BSP released updated guidelines aligning with FATF standards |
The reopening is expected to attract new domestic and international players, introducing more competition and services. It also signals the government’s effort to balance financial innovation with stability.
Key CASP Requirements Include:
- Local registration: Entities must incorporate crypto services into their business plans in the Philippines.
- Capital threshold: At least PHP 100 million in paid-up capital, excluding crypto.
- Physical presence: A staffed office in the country.
- Fund segregation: Client money separated from company assets.
- Trading and security rules: Listing standards, disclosures, and system safeguards.
The ten named exchanges failed to meet these requirements, which led to the August 2025 advisory.
The enforcement is part of a step-by-step playbook that includes public advisories, blocking websites through internet providers like PLDT and Smart, and requesting Google and Apple, amongst others, to delist mobile apps.
The SEC also targets unauthorized marketing, including promotions by influencers. This method was first used against Binance in 2024 and effectively limited access.
Philippines SEC Crypto Advisory: Are User Funds at Risk?
The SEC’s advisory highlights real dangers for users who continue to hold digital assets on unregistered platforms.
Financial and Legal Risks
- No protection of client funds from company use.
- No legal recourse in Philippine courts.
- Higher exposure to insolvency or fraud.
Operational Risks
- Confirmed website blocks by internet service providers (ISPs).
- Likely app removals in the near future.
- Possible frozen withdrawals without notice.
What Users Should Do Now
Immediate action is the safest choice for those still holding funds on the flagged platforms. Therefore, these are the steps that they should take:
- Stop activity: Avoid trading or deposits.
- Withdraw assets: Transfer funds to a licensed local exchange or a non-custodial wallet.
- Preserve records: Save screenshots of balances and transactions for potential claims.
Crypto Adoption in the Philippines
The Philippines is among the world’s most active crypto markets. Chainalysis’ 2024 Global Crypto Adoption Index ranked the country in the top 10 worldwide, driven by retail use and remittances.
Crypto use surged during the pandemic, particularly with the rise of play-to-earn (P2E) games such as Axie Infinity. Although the hype cooled, digital assets remain popular for both trading and practical use.
Drivers of Adoption
| Factor |
Impact |
| Remittances |
Millions of overseas Filipino workers send money home, with crypto offering cheaper transfers. |
| Play-to-earn gaming |
Sparked mass onboarding of retail users during the pandemic. |
| Mobile-first economy |
High smartphone penetration supports wallet and exchange access. |
| Limited banking access |
Around 44% of Filipino adults remain unbanked, creating space for crypto use. |
BSP and SEC Licensed Crypto Platforms in the Philippines
The SEC and BSP maintain a list of approved providers offering legal protections. These include Coins.ph, PDAX, Maya, Bloomsolutions, SurgePay, Moneybees, UnionBank, GoTyme Bank, XenRemit, and TopJuan Technologies.
Licensed platforms provide:
- Legal recourse for complaints.
- Segregation of client funds.
- Supervision by regulators.
- Stable access without geo-blocking.
How Thailand and Indonesia Are Tightening Digital Asset Rules
The Philippines is not alone in tightening rules. Thailand has blocked Bybit and OKX, while Indonesia has raised taxes on foreign platforms.
These regional moves reflect a coordinated trend toward regulated digital asset markets prioritizing stability and security.
Global platforms often choose compliance in larger markets while delaying in smaller ones. The SEC’s firm stance now forces exchanges to decide whether to invest in Philippine compliance or withdraw.
Bybit’s focus on Europe’s MiCA regulation while ignoring Philippine licensing illustrates this selective approach.
The SEC’s strategy combines stricter oversight, partnerships with tech platforms, and FATF-aligned standards. Including influencer marketing in enforcement shows a new level of detail in protecting users. While short-term disruption is likely, the long-term outlook is a safer, more transparent ecosystem for digital assets.
Conclusion
The Philippines is entering a new chapter in crypto regulation. The BSP’s reopening of licensing in September 2025 and the SEC’s strong enforcement against unregistered platforms show that regulators want growth to continue, but in a safer and more accountable way. This balance between innovation and protection is central to how the market will develop.
The SEC’s advisory against ten major offshore exchanges highlights the risks of leaving funds on unlicensed platforms. Users face blocked access, frozen withdrawals, and no legal protection. By pushing exchanges to meet higher standards and by supporting licensed local players, regulators are trying to build a more stable environment for Filipino users.
The future of crypto in the Philippines will depend on how quickly global platforms adapt and how effectively local providers respond to demand. With clear rules, strong oversight, and an active user base, the country has the chance to strengthen its role as one of Asia’s leading crypto markets.
FAQs
No, trading is still legal. The SEC only requires exchanges to register under the new Crypto Asset Service Provider rules.
Users risk total loss of funds, no legal protection, and sudden loss of access due to geo-blocking and app removal.
The Bangko Sentral ng Pilipinas will likely reopen applications on September 1, 2025, after its three-year moratorium.
Exchanges must have at least ₱100 million in paid-up capital to operate legally in the Philippines.
The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Dr. Lorena Nessi is an award-winning journalist and media technology expert with 15 years of experience in digital culture and communication. Based in Oxfordshire, UK, she combines academic insight with hands-on media practice.
She holds a PhD in Communication, Sociology, and Digital Cultures, and an MA in Globalization, Identity, and Technology.
Lorena has taught at Fairleigh Dickinson University, Nottingham Trent University, and the University of Oxford. She is a former producer for the BBC in London, with additional experience creating television content in Mexico and Japan.
Her research focuses on digital cultures, social media, technology, capitalism, and the societal impact of blockchain innovation.
She has written extensively on digital media and emerging technologies, with her work featured in both academic and media platforms. Her Web3 expertise explores how blockchain technologies shape culture, economics, and decentralized systems.
Outside of work, Lorena enjoys reading science fiction, playing strategic board games, traveling, and chasing adventures that get her heart racing. A perfect day ends with a relaxing spa and a good family meal.
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