THE Securities and Exchange Commission (SEC) has issued an advisory on ten cryptocurrency platforms that it said are operating without the necessary registration.
In an advisory released Aug. 4, the SEC flagged crypto platforms OKX, Bybit, Mexc, Kucoin, Bitget, Phemex, Coinex, Bitmart, Poloniex, and Kraken.
The commission said the platforms offer crypto-asset services to Philippine residents without the required registration or authorization mandated under SEC Memorandum Circular (MC) No. 4 and MC No. 5, which took effect on July 5.
“These rules apply to any person or entity that offers, promotes, or facilitates access to crypto-asset trading venues or intermediation services such as buying, selling, and derivatives trading of crypto-assets,” the corporate regulator said.
“The SEC has identified other platforms that are similarly situated — that is, they continue to offer or market crypto-asset services to the Philippine public without the required registration or license,” it added.
According to the SEC, Filipino investors are at risk of total loss of funds, no legal recourse, and exposure to fraud, market manipulation, and identity theft.
The commission added that unregistered crypto-asset platforms may be exploited for money laundering and terrorist financing.
“However, unregistered platforms often operate without effective anti-money laundering systems, and are not subject to monitoring by Philippine regulators. This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force,” the SEC said.
“Continued public access to such platforms may expose the country to cross-border illicit finance and reputational risks, including concerns related to gray-listing,” it added.
Meanwhile, the SEC said it will take legal and regulatory actions against violators, which may include the issuance of cease-and-desist orders and requests to block access to websites and applications.
The commission may also file criminal complaints; coordinate with global platforms such as Google, Apple, Meta, and TikTok to remove active unauthorized marketing activities; and take other appropriate enforcement actions as deemed necessary. — Revin Mikhael D. Ochave
