SEC warns public about illegal crypto platforms

The Securities and Exchange Commission warned the public against using online platforms offering crypto-asset services without proper registration or a license from the agency.

In an advisory, the SEC’s Enforcement and Investor Protection Department identified unauthorized crypto-asset service providers (CASPs) that remain accessible and actively market to users in the Philippines.

Among the unregistered platforms that are not authorized to solicit investments from the public are OKX, Bybit, MEXC, KuCoin, Bitget, Phemex, CoinEx, BitMart, Poloniex and Kraken.

“This list is not exhaustive,” the SEC said.

“Other platforms offering similar services to the Philippine public without registration or SEC approval are likewise considered to be operating in violation of Philippine securities laws.”

The agency said the actions of these platforms are illegal and place Filipino investors at serious risk — including potential total loss of funds, no legal protection, fraud, market manipulation and identity theft.

In May, the SEC issued Memorandum Circular Nos. 4 and 5, Series of 2025, to strengthen its oversight of CASPs and crypto assets by laying out rules and operational guidelines.

Under these rules, all CASPs and crypto-asset securities that meet the definition of securities under Republic Act No. 8799, or the Securities Regulation Code, must be registered with the SEC.

The circulars officially took effect on July 5.

Money laundering risks

The SEC also warned that unregistered crypto platforms could be used for money laundering and terrorist financing, as they are not subject to local regulatory monitoring and often lack effective anti-money laundering controls.

“This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force,” the advisory stated.

“Continued public access to such platforms may expose the country to cross-border illicit finance and reputational risks, including concerns related to gray-listing.”

Under Republic Act No. 9160, or the Anti-Money Laundering Act, virtual asset service providers must implement strong safeguards — including customer due diligence, suspicious transaction reporting and recordkeeping — to combat illicit financial activities.

Possible sanctions

The public is advised not to invest in or trade through unregistered platforms and to remain vigilant about crypto promotions on apps, social media and by influencers targeting Filipino users.

The SEC also urged the public to report any unauthorized crypto offerings, sales or marketing to the EIPD at epd@sec.gov.ph or to the Cyber and Forensics Division at eipd-cybercrime@sec.gov.ph.

For questions about registration and licensing, email casp@sec.gov.ph.

The SEC said it may take legal or regulatory action against violators of CASP rules, including issuing cease-and-desist orders and blocking access to illegal websites and apps.

Criminal complaints may also be filed against unauthorized CASPs under the Securities Regulation Code and Republic Act No. 11765, or the Financial Products and Services Consumer Protection Act.