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Key Takeaways
Unlicensed Platforms Warned: The SEC issued alerts against crypto exchanges operating without registration, warning them to cease offering or promoting services to Philippine users.
New Rules in Effect: The enforcement follows the implementation of SEC Memorandum Circulars No. 4 and No. 5, which outline compliance requirements for virtual asset service providers (VASPs).
Investor Protection Priority: The crackdown aims to protect Filipino investors from potential fraud and ensure all crypto platforms meet legal and regulatory standards.
Overview
The notice on Monday cautioned that these platforms were still providing or marketing crypto services to users in the Philippines, even though they are not registered under SEC Memorandum Circulars No. 4 and No. 5, which became effective on Tuesday.
The alert said,
“These platforms have no licence, registration, or authorisation from the SEC to operate in the Philippines or to solicit investments from the public.”
It added,
“Their actions are unauthorised and expose Filipino investors to significant risk.”
The move is part of a broader campaign to protect investors and ensure that all entities dealing with crypto assets comply with the country’s financial regulations.
In a statement released this week, the SEC confirmed that it has begun issuing formal warnings and orders to block access to several offshore and domestic crypto exchanges operating without proper registration. The commission said these platforms pose
“significant risks to Filipino investors,”
especially in the absence of consumer safeguards typically required of licensed financial entities.
“We urge the public to be vigilant and avoid transacting with unregistered crypto exchanges,”
the SEC said.
“Entities engaged in the trade or offering of securities, including digital assets, must be registered and have the appropriate license from the commission.”
The regulator’s action follows the rapid growth of crypto adoption in the country, where digital assets are increasingly seen as both investment vehicles and tools for cross-border remittances. However, this popularity has also attracted bad actors and unlicensed firms taking advantage of regulatory gaps.
SEC Expands Powers Under Revised Guidelines
The SEC’s crackdown is supported by its expanded authority under the Financial Products and Services Consumer Protection Act (FCPA), enacted in 2022. The law empowers the SEC to impose administrative sanctions, restrict access to non-compliant websites, and coordinate with the National Telecommunications Commission (NTC) and other agencies to block illegal platforms. According to SEC Chairperson Emilio Aquino, the agency has already submitted a list of offending websites to the NTC, requesting immediate takedown orders.
“We are working with our partner agencies to ensure that unregistered VASPs cease operations in the Philippines,”
he said. In addition to the takedown requests, the SEC has initiated investigations into several high-profile crypto exchanges operating in the country without a license.
These include global platforms offering Filipino users spot trading, futures, staking, and lending services. The commission emphasised that while it is open to the growth of innovation in the fintech and blockchain space, such developments must occur within the framework of the law.
“We are not against crypto or blockchain,”
Aquino stated,
“but we must prioritise the safety of our investors and the integrity of our financial markets.”
Market Impact and Response from Crypto Community
The SEC’s action has sparked various responses from the local crypto community and industry stakeholders. Some have welcomed the enforcement drive, noting that it could help weed out scams and raise the bar for operational standards. Others have raised concerns that overly strict enforcement might hinder innovation and discourage foreign investment in the local crypto ecosystem.
“Increased regulation is inevitable as the market matures,”
said Luis Buenaventura, a prominent crypto entrepreneur in the Philippines.
“But the SEC should also work closely with stakeholders to develop a clear and accessible path to compliance for local startups and service providers.”
Several crypto platforms have reportedly paused operations or disabled services for Philippine users in response to the SEC’s actions. Meanwhile, the regulator urges users to check its official website for a list of registered VASPs before engaging in digital asset transactions. The commission also reiterated that any company offering investment products—crypto or otherwise—must undergo a formal registration process and disclose key financial and risk information to the public.
As the Philippine government continues to refine its crypto regulatory framework, the SEC’s latest crackdown marks a significant step toward establishing order in the fast-evolving digital asset space. The agency has committed to ongoing monitoring and coordination with law enforcement to ensure full compliance and investor protection.
Filipino crypto users are advised to exercise extreme caution and avoid platforms not vetted or licensed by the SEC.