The Philippines blocks offshore cryptocurrency trading platforms! According to a report by Decrypt on the 6th, the Philippine Securities and Exchange Commission (SEC) took action on August 6 to fully block ten offshore cryptocurrency trading platforms, and local users can no longer access OKX, MEXC, Bybit, KuCoin, Bitget, Kraken, CoinEx, Phemex, BitMart, and Poloniex through the internet provided by Philippine telecommunications provider PLDT.
Blocking basis: Dual requirements of capital threshold and local registration.
In fact, as early as this Monday, the Philippine officials issued an announcement determining that these exchanges violated local laws. In this announcement, the SEC stated that these trading platforms had not completed company registration in the Philippines and had not met the capital requirement of 100 million pesos (Piso), physical office, and monthly report requirements of CASP.
The SEC believes that soliciting investments from Filipino residents without permission will exacerbate the risks of financial loss, identity theft, and market manipulation. Therefore, authorities have instructed major internet service provider PLDT to immediately block these platforms, emphasizing that 'the list is not limited to these.'
User shock: Trading interruptions and liquidity tightening.
On the day of the block, many local users could only see an interception page when trying to log into the trading platform, resulting in users facing a series of issues such as being unable to withdraw assets, forced cancellation of orders, and short-term liquidity freeze. In response, GCash cryptocurrency business head Luis Buenaventura described that the community was 'very angry' and questioned whether the regulation might carry protectionist overtones.
However, he also added that in the long run, local compliant platforms will attract the 'vast majority of untapped' novice users and can focus on education and fraud prevention. He publicly stated:
'Although it is painful now, compliant platforms will ultimately remain, and users will become safer.'
Southeast Asia is facing a similar regulatory storm.
The Philippines is not an isolated case. For example, Thailand blocked five exchanges including Bybit and OKX in May this year, while Indonesia increased the tax burden on foreign platforms and strengthened the penalty mechanism for unlicensed operations.
Frequent actions in the region indicate that countries are pulling cryptocurrency operations back into the regulatory scope of traditional finance. The Philippine SEC's strong action also reminds any exchanges that do not meet localization and licensing conditions that market access thresholds cannot be ignored.
Next step: The dilemma of staying or leaving.
Faced with rising capital thresholds and compliance costs, some platforms are considering applying for local licenses, investing in personnel, tax, and office space; others may choose to withdraw, directing users to local operators or decentralized exchanges (DEX).
Short-term pain is inevitable, but the Philippine SEC expects that as policies gradually improve, local users are still expected to reach 12.79 million by 2026. As the SEC stated in its announcement:
Compliance is no longer an option, but a lifeline.