The Philippine Securities and Alternate Fee (SEC) has flagged ten outstanding crypto exchanges, together with OKX, Bybit, KuCoin, and Bitget, for working within the nation with out the required approval.
On Aug. 4, the SEC issued a public warning advising residents to keep away from partaking with these unregistered platforms, which haven’t secured licenses to function or solicit investments throughout the Philippines.
The monetary regulator added:
“This record is just not exhaustive. Different platforms providing comparable companies to the Philippine public with out registration or SEC approval are likewise thought-about to be working in violation of Philippine securities legal guidelines.”
The SEC emphasised that these platforms pose important dangers to customers. Based on the regulator, people who have interaction with these unregistered platforms might be uncovered to potential monetary losses with out authorized recourse.
Moreover, the SEC highlighted considerations concerning the risks of fraud, market manipulation, and id theft, which may have an effect on Filipino customers.
Along with these dangers, the SEC raised alarms concerning the platforms’ potential involvement in illicit actions equivalent to cash laundering and terrorist financing (ML/TF).
The regulator expressed concern over the danger of those exchanges getting used for cross-border monetary crimes, which may draw worldwide scrutiny and put the Philippines prone to being added to the worldwide monetary watchlist.
This transfer is unsurprising contemplating the Philippines stays one of many high international crypto adopters, in response to a 2024 Chainalysis report.
The warning follows the SEC’s earlier choice to dam entry to Binance’s web site within the Philippines, signaling that comparable actions might be taken towards the flagged exchanges.
The SEC can also be contemplating extra extreme steps to curb unauthorized promotions, equivalent to cease-and-desist orders, felony complaints, and worldwide cooperation with main tech corporations like Google, Apple, Meta, and TikTok.
The Philippine authorities’s actions replicate a broader regional development, significantly in Asia, the place authorities are tightening rules on crypto platforms.
