The Securities and Exchange Commission (SEC) has warned the public against using online platforms that provide crypto-asset services without a license from the Commission.
In an advisory, the SEC’s Enforcement and Investor Protection Department (EIPD) identified several unauthorized crypto-asset service providers (CASPs) that continue to operate and promote their services in the Philippines. These include OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken.
The SEC advised the public to avoid investing or trading on unregistered platforms and to be cautious of crypto promotions on mobile apps, social media, and from influencers targeting Filipino users.
“This list is not exhaustive. 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 advisory stated. “Their actions are unauthorized and expose Filipino investors to significant risk, including total loss of funds, no legal recourse, [and] exposure to fraud, market manipulation, and identity theft.”
The warning comes after the SEC issued memorandum circulars, which set rules for CASPs and guidelines for their operations. Under these rules, all CASPs and crypto-asset securities considered as securities under the Securities Regulation Code must be registered with the SEC. The regulations took effect on July 5.
The SEC also noted that unregistered crypto platforms could be used for money laundering and terrorist financing because they are not monitored by local regulators and often lack proper anti-money laundering systems.
“This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force,” the advisory said.
The SEC may take legal action against violators, including issuing cease and desist orders, blocking website access, and filing criminal complaints under relevant laws.