Philippines Warns OKX, Bybit, Kraken and Seven Other Exchanges for Operating Illegally Under New Crypto Rules

Philippines Flags OKX, Bybit, Kraken And More For Breaching New Crypto Rules

Ten offshore crypto exchanges, including major names like OKX, Bybit, KuCoin, and Kraken, have been formally warned by the Philippine Securities and Exchange Commission (SEC) for operating without a licence under newly enforced digital asset regulations.

In an advisory published on 4 August, the SEC said these platforms are offering crypto services to Filipino users despite having no registration, authorisation, or approval to do so.

The platforms are in violation of the SEC’s new CASP Rules and Guidelines, which came into effect on 5 July 2025 under Memorandum Circulars No. 4 and No. 5.

The Commission warned,

“These platforms have no license, registration, or authorization from the SEC to operate in the Philippines or to solicit investments from the public. Their actions are unauthorized and expose Filipino investors to significant risk.”

Platforms Still Accessible And Promoting Services

Despite the rules taking effect, exchanges such as MEXC, Bitget, Phemex, CoinEx, BitMart and Poloniex continue to operate in the country, with many maintaining active marketing campaigns targeting local users.

According to the SEC, this creates serious investor protection concerns.

The regulator said affected users may face total loss of funds, lack of legal recourse, and exposure to scams, fraud or identity theft.

The SEC stressed that the named entities are not the only ones in breach.

“This list is not exhaustive. Other platforms offering similar services to the Philippine public without registration or SEC approval are likewise considered to be operating in violation of Philippine securities laws.”

Philippine SEC Moves Towards Aggressive Enforcement

The Commission stated that it is ready to pursue regulatory and legal action, including cease and desist orders, website blocking, and criminal complaints.

These steps mirror its past actions against Binance, which was blocked in 2024 for similar violations.

In that case, the regulator worked with the National Telecommunication Commission to restrict access to Binance’s trading platform and issued letters to Google and Apple requesting the app’s removal from local stores.

Binance users in the Philippines were later unable to access their funds.

Similar enforcement is now on the table for the latest group of unregistered platforms.

The SEC said it will coordinate with tech firms including Apple, Google and Meta to limit the reach of unauthorised crypto marketing targeting Filipinos.

Concerns Over Illicit Finance And National Security

Beyond consumer protection, the SEC also flagged national security risks linked to unregulated crypto platforms.

Operating outside of the country’s Anti-Money Laundering Act, these entities are not required to conduct know-your-customer (KYC) checks, report suspicious transactions, or maintain financial records.

This, the regulator warned, could facilitate money laundering, cross-border criminal activity, and increase the country’s exposure to being grey-listed by international financial watchdogs.

Thailand Takes Action Against OKX And Bybit

The Philippines is not alone in tightening controls over unlicensed crypto exchanges in the region.

In May, Thailand’s Securities and Exchange Commission ordered the closure of five platforms, among them OKX and Bybit, over concerns about their lack of proper licences and involvement in unauthorized activities.

The Challenge Between Innovation And Regulation

Striking a balance between fostering innovation and enforcing strict regulations remains a critical challenge for Southeast Asian regulators.

As digital assets grow in popularity, authorities face the difficult task of protecting investors and national interests without stifling technological progress.

How these countries navigate this tension will shape the future landscape of crypto adoption and governance in the region.