The Securities and Exchange Commission of the Philippines (SEC) issued a warning concerning online platforms offering digital asset services without the required registration. These platforms continue to target Philippine users in violation of the newly implemented rules.
The warning follows the efficiency of July 5 of the circular of dry memorandums n ° 4 and 5, otherwise known as rules and directives of the Crypto asset service provider (CASP). These require a person or an entity that offers, promotes or facilitates access to trading places for digital assets or intermediation services – such as purchase, sale or derivative trading – to register with the SEC.
In his OpinionThe SEC has appointed 10 platforms currently accessible in the country without appropriate license: OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex and Kraken.
“These platforms do not have a license, registration or authorization of the SEC to operate in the Philippines or to request public investments,” said the agency. “Their actions are not authorized and expose the Philippin investors to significant risks, in particular: a) the total loss of funds b) No legal appeal c) exposure to fraud, market manipulation and identity theft.”
Bitget responds to inclusion in the council
Among the platforms named, Bitget recognized the Philippine’s SEC Council but argued that the problem is strictly related to local registration formalities, not to the integrity or functionality of its global operations.
“Bitget recognizes the SEC Council the Philippins and actively assesses the details,” said the Honorable, in chief of Bitget, in response to CoiiSgeek. “Above all, this opinion relates only to registration formalities in the Philippines and does not reflect the security or stability of global Bitget operations. Users continue to access all platform services, including trading, deposits and withdrawals without disturbance. Your funds remain secure and in our proofs. ”
The company has added that it actively pursues regulatory approvals in various jurisdictions and is open to entering an official dialogue with the SEC.
“We remain determined to obtain licenses on the markets in which we operate,” added NG. “We have obtained the VASP and other licenses in Argentina, Georgia, Dubai and El Salvador this year only. We are trying to exponentially increase our global footprint and actively assess markets such as the Philippines and we will pursue appropriate authorizations in dialogue with this model.
Potential for fraud, market abuse and identity theft
The SEC has underlined the risks posed by engaging with these platforms, noting that users are left without legal protection if their assets are lost or stolen. These unregistered services also leave investors vulnerable to market manipulation and scams.
The regulator stressed that other platforms not named in the Council but offering similar services without violating the laws on securities. “This list is not exhaustive,” noted the dry. “Other platforms offering services similar to the Philippin public without recording or approval of the SEC are also considered to operate in violation of Philippine laws on securities.”
High risk of money laundering and terrorist financing
The SEC has also warned that unregistered digital asset platforms can be used for illegal activities.
“Unregistered cryptocurrency platforms can be used for money laundering and terrorist funding (ML / TF),” said the opinion. Under the Philippine Law and the Anti-Blanching Act (AMLA), providers of virtual asset services (VASP) are considered to be covered and are required to implement strict controls, in particular the reasonable diligence of customers, transaction reports and registers.
“Unregistered platforms often work without effective LMA systems and are not subject to monitoring of Philippin regulators,” added the dry. “This creates serious vulnerabilities that have been reported several times by the Financial Action Task Force (FATF). Continuous public access to the public to these platforms can expose the country to illicit finances and reputation risks, including concerns related to the gray list. ”
Bitget, however, argued that he implements complete LMA and risk checks in all of his markets, including the Philippines.
“Bitget applies standardized protective frameworks worldwide for all users, including those of the Philippines,” said NG. “Our multilayer approach begins with compulsory identity verification (KYC) for each account, associated with advanced transactions monitoring systems that go beyond suspicious activities in real time – exceeding the standard requirements for combating money laundering (AML).”
SEC application measures and legal action
The Commission said it would pursue legal and regulatory measures against offenders, either on its own initiative or by receiving complaints. Application measures may include prescriptions to stop and abstain, requests for access to websites and mobile applications, criminal complaints under Securities Regulation Code (SRC) and Financial Products and Services Consumer Protection Act (FCPA), and coordination with the main digital platforms such as Google (Nasdaq: Googl), Apple (Nasdaq: App), Meta (Nasdaq: meta), and Tiktok to delete unauthorized marketing content.
SEC added that it can take “other appropriate application measures as required”.
Public orientation and report mechanisms
SEC has urged the public not to use or invest in unregistered platforms. “Do not invest or do not invest in platforms that are not registered with the SEC,” said the opinion. He also warned of trusted influencers, social media promotions or mobile applications that seem to target Filipino investors.
Any suspicious activity involving unauthorized digital currency offers must be reported to the Department of Investor Application and Protection or the Cyber and Forensics Division of the Agency.
CASP rules in force
The latest application of application is based on the SEC advertisement of new rules for cryptographic asset service providers in June. “The rules were issued to support local players and take care of unregistered people,” Atty. Paolo NGO, Deputy Director of the SEC, said in a panel of the Philippine 2025 Blockchain Week 2025. “We believe that the rules will give more teeth to our application team, and they can be more assertive by pursuing unregistered platforms that operate in the Philippines.”
Under these rules, all Caps must register as a share companies in the Philippines with a capital paid of at least 100 million PHP (1.8 million dollars), excluding digital assets. Additional requirements include a business plan, a risk disclosure matrix and other compliance documents.
Focus on the segregation of funds and the protection of investors
One of the main provisions for the protection of investors in the new CASP framework is the obligation to separate customer funds from the company funds. “CASP directives emphasize the segregation of client funds for exchange funds,” NGO said. “It is because we see that learning to (collapse) other exchanges is really a key measure to protect investors (and) funds.”
He added that platforms must educate users on the risks linked to digital money. “We would like the Philippins to access these products, but we need (of them) to make them well informed of the risks involved before being able to engage with the platform,” NGO said.
Marketing and influencer surveillance restrictions
The SEC has also tightened the rules on how digital currency products can be marketed. NGO has said that any digital currency marketing entity in the Philippines must be a company registered with a main dry license. “The standard for us for the marketing of cryptographic assets in the Philippines would simply be a Philippin recording of a company-Basic doing business, a main license of the dry,” he said.
He also discussed the role of content creators and influencers, declaring that even if educational efforts are authorized, the promotion of specific platforms – in particular those not recorded – could cause an action in application.
“We do not prohibit the remuneration of educational efforts, but we are still looking at good faith,” said NGO. “If you educate and do not push an investment or a specific platform, it is generally acceptable.” However, “the law application team would really examine so-called educators who push their audiences in a specific platform.”
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