Unlicensed cryptocurrency platforms are helping fund a range of serious crimes in the Philippines, including online scams and illegal gambling, according to an ICT expert who is urging regulators to act.
“Criminal syndicates are exploiting regulatory gaps to carry out diverse illegal activities, using unlicensed and unregulated cryptocurrency platforms as their tools,” said Dr. Reyner Villaseñor, DPA, co-chair of the ECCP ICT Committee.
Villaseñor said these exchanges operate with little oversight, making them attractive to criminal groups. Without proper know-your-customer (KYC) and anti-money laundering (AML) measures, they allow users to move large sums of money while remaining anonymous.
Digital money, real harm
Citing data from the Global Anti-Scam Alliance, Villaseñor said online crimes cost Filipinos an estimated P460 billion in 2024, equal to 1.9% of the country’s GDP. The Bangko Sentral ng Pilipinas (BSP) also recorded P5.82 billion in losses from cyber crimes affecting financial institutions it regulates, marking a 212% increase from the previous year.
“These numbers paint a grim picture: the Philippines is now in the midst of a digitally enabled crime epidemic, one that calls for immediate public vigilance, private sector safeguards, and proactive regulatory intervention and law enforcement action,” he said.
Villaseñor pointed to a case where the P200-million ransom was reportedly converted into cryptocurrency to avoid detection. He warned that criminals are also using coin mixers and privacy-focused tokens to erase money trails and evade law enforcement.
Criminals hiding behind jurisdiction loopholes
According to Villaseñor, local virtual asset service providers (VASPs) follow court orders and freeze suspicious wallets. In contrast, many foreign-based platforms ignore requests, citing jurisdictional limits and privacy laws.
“This is not just a regulatory oversight, it’s a national security crisis in the making,” he emphasized.
Despite repeated cease-and-desist orders and blocking measures from agencies like the National Telecommunications Commission, several unlicensed platforms remain accessible to users in the Philippines, he added.
Villaseñor is calling for a coordinated response from the Securities and Exchange Commission, Department of Information and Communications Technology, BSP, and law enforcement. He urged them to take down unauthorized apps, enforce blocking at the internet service provider level, strengthen cybercrime tracking systems, and launch public education campaigns.
“This systemic weakness creates a haven for foreign syndicates,” Villaseñor said. “The Philippines is no longer just a victim, it is rapidly becoming a launchpad for global organized crime.”
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