Philippines SEC Warns Public Against Unregistered Crypto Platforms

The Securities and Exchange Commission (SEC) of the Philippines has issued a warning to the public about engaging with unregistered crypto platforms, naming Bybit, Kraken, and eight other exchanges that are "operating without the required registration or authorization from the Commission, as mandated under SEC CASP Rules and Guidelines, which came into effect on 05 July 2025."

This action is part of the SEC's ongoing efforts to protect Filipino investors from financial risks associated with unregulated entities. The advisory went on to highlight the significant risks Filipino investors expose themselves to when dealing with such platforms, such as total loss of their funds, no legal recourse and exposure to fraud, market manipulation, and identity theft.

The regulator also cast doubt on the robustness of due diligence and compliance processes at unregulated entities, citing concerns that these platforms may be exploited for money laundering and terrorist financing (ML/TF), exposing the country to cross-border illicit finance and reputational risk.

The SEC's actions are supported by new frameworks, including SEC Memorandum Circular Nos. 4 and 5, Series of 2025 , which establish the SEC Rules on Crypto-Asset Service Providers (VASP Rules) and their operational guidelines. These rules mandate that all crypto-asset service providers must register as domestic corporations and have a minimum paid-up capital of P100 million.

The Commission also stressed that it would, "upon complaint, take legal and regulatory action against violators, which may include Cease and Desist Orders, blocking of access to websites and applications in violation or any other appropriate enforcement action.

The commission has taken similar actions in the past against other unregistered platforms. For example, the SEC pursued a geo-blocking enforcement action against Binance .

Additionally, in partnership with the National Telecommunications Commission (NTC), the SEC successfully blocked the website of the unlicensed investment platform Mitrade after it was found to be actively promoting its services to Filipinos without the proper registration.