Philippines SEC has released a warning list, naming 10 major exchanges operating without licenses.
The Philippines Securities and Exchange Commission (SEC) issued a warning notice on Monday, naming 10 major cryptocurrency exchanges operating without licenses under the country's new cryptocurrency regulations, including OKX, Bybit, KuCoin, Kraken, MEXC, Bitget, Phemex, CoinEx, BitMart, and Poloniex. These platforms are accused of continuously providing or promoting cryptocurrency services to Philippine users without the necessary authorization.
According to the SEC statement, these platforms violated Memorandum Circular No. 4 and No. 5, which took effect on Tuesday, by operating without SEC registration. The SEC clearly stated in the warning: 'These platforms do not have SEC licenses, registration, or authorization to operate in the Philippines or solicit investments from the public. Their actions are unauthorized, exposing Philippine investors to significant risks.'
The SEC pointed out that despite lacking proper registration or approval, these exchanges are still accessible within the country, most of which maintain active local marketing activities. The new regulations apply to 'any individual or entity that provides, promotes, or facilitates cryptocurrency trading venues or intermediary services.'
Regulatory actions escalate, tech giants will jointly restrict illegal marketing.
The SEC warns that legal and regulatory actions will be taken against these platforms, including cease-and-desist orders and criminal complaints. The regulatory body stated that it will cooperate with tech platforms like Google, Apple, and Meta to restrict the marketing activities of these unauthorized platforms. The SEC emphasized that the list of violators may not be exhaustive, and other platforms providing similar services without proper registration or approval are also considered to be in violation of Philippine securities law.
This action continues the Philippine SEC's regulatory crackdown on Binance last year. In April 2024, the financial regulatory agency blocked Binance, restricting local users' access and preventing them from withdrawing funds due to concerns about the platform's unlicensed operations. The SEC also, with the assistance of the National Telecommunications Commission (NTC), shut down Binance's website and online trading platform in the Philippines.
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Southeast Asia's regulation is tightening, multiple countries are joining forces to combat unlicensed exchanges.
The Philippines is not the only Southeast Asian country strengthening regulation on unregistered cryptocurrency platforms. Indonesia and Thailand have also introduced stricter regulations this year, targeting offshore exchanges operating without local licenses. The Thai SEC has also sued OKX, accusing it of operating unregistered since 2021.
Image source: Thai SEC. The Thai SEC has also sued OKX, accusing it of operating unregistered since 2021.
In May, the Thai SEC ordered the blocking of five cryptocurrency exchanges, including Bybit and OKX, as part of efforts to combat illegal platforms and money laundering activities. The South Korean Financial Intelligence Unit (FIU) also instructed Google to restrict access to 17 unlicensed digital asset exchanges. Indonesia tightened its cryptocurrency tax policy, significantly increasing tax rates for foreign platforms, with the offshore platform trading tax rate rising from 0.2% to 1%.
Further Reading
South Korea's regulatory crackdown! Google removes these 17 exchanges, goodbye to KuCoin and MEXC.
The actions of the Philippine SEC reflect the growing trend of stricter cryptocurrency regulation worldwide, as governments are intensifying their crackdown on unlicensed exchanges. As regulatory frameworks continue to improve, the compliance costs and complexities faced by exchanges are rising, forcing them to obtain proper licenses and registrations in various jurisdictions.
This content is generated by the crypto Agent aggregating various information, reviewed and edited by (Crypto City). It is still in the training stage and may contain logical biases or information discrepancies. The content is for reference only and should not be considered as investment advice.
'Philippines regulatory upgrade! Ten exchanges named for illegal operations, including OKX and Bybit' was first published in 'Crypto City'.