10 Unlicensed Crypto Exchanges Blocked in Philippines

Feb, 4 2026

In August 2025, the Philippine Securities and Exchange Commission the government agency responsible for regulating securities and investment activities in the Philippines took a major step to protect local investors by blocking access to 10 cryptocurrency exchanges. This SEC crackdown followed new regulations requiring all crypto platforms to register and meet strict financial requirements. Let's break down what happened, why it matters, and what it means for users.

SEC Blocks 10 Major Crypto Exchanges

On August 5, 2025, the Philippine Securities and Exchange Commission issued a public warning against 10 cryptocurrency exchanges operating without proper authorization. These platforms included OKX a global cryptocurrency exchange that was among the 10 blocked by the Philippine SEC in 2025, Bybit a major exchange that faced regulatory action in the Philippines, Mexc a cryptocurrency exchange that was blocked in the Philippines, KuCoin a crypto exchange blocked by the Philippine SEC, Bitget a platform that was ordered blocked by the SEC, Phemex a crypto exchange blocked in the Philippines, CoinEx a platform that failed to comply with Philippine regulations, BitMart a crypto exchange blocked by the SEC, Poloniex a cryptocurrency exchange that was restricted in the Philippines, and Kraken a major exchange blocked by Philippine regulators.

Why did the SEC take this step? Simple: these exchanges were operating without licenses, putting Filipino investors at serious risk. Without proper registration, there's no way to verify if these platforms are safe or trustworthy. The SEC made it clear that unlicensed crypto platforms could expose users to fraud, asset theft, and other dangers. This move was part of a broader effort to protect local investors and bring digital assets under proper regulation.

New Rules for Crypto Exchanges in the Philippines

The SEC's action followed the implementation of two new regulations: Memorandum Circular No. 4 a regulation requiring crypto exchanges to register with the SEC and Memorandum Circular No. 5 a regulation establishing requirements for Crypto Asset Service Providers. These rules took effect on July 5, 2025, and set clear standards for any crypto platform wanting to operate in the Philippines.

Key Requirements for Crypto Asset Service Providers in the Philippines
Requirement	Description
Minimum Capital	PHP 100 million (approx. $1.76 million)
Physical Presence	Must be registered and operate within the Philippines
Customer Fund Separation	Strict segregation of customer assets from company funds
Reporting	Regular submissions to SEC and Anti-Money Laundering Council

These rules weren't just about paperwork. They were designed to protect users. For example, the capital requirement ensures exchanges have enough money to handle losses. The fund separation rule prevents companies from using customer money for their own operations-a common cause of crashes in other countries. And regular reporting helps regulators spot problems before they get out of hand.

How the Block Happened

After the SEC's warning, the National Telecommunications Commission the government agency regulating telecommunications in the Philippines ordered internet service providers to block access to the listed exchanges. PLDT the largest telecommunications company in the Philippines and its wireless subsidiary Smart Communications a major mobile network operator in the Philippines confirmed they had blocked all 10 platforms by August 12, 2025.

PLDT reported blocking over one hundred billion attempts to access malicious domains as part of its cybersecurity efforts. This wasn't just about the crypto exchanges-it was part of a broader push to protect users from scams and fraud. The company's Cyber Security Operations Group worked closely with regulators to ensure the blocks were effective.

Regulatory table with symbols for capital, fund separation, and reporting

Tax Changes for Crypto in the Philippines

The crackdown happened alongside major changes to how cryptocurrency is taxed. Starting in 2025, capital gains from selling crypto for fiat currency or exchanging it for goods now face a 15% tax rate. Income from mining, staking, or receiving crypto as payment is also taxed as regular income. Even transactions where you buy goods with crypto now include a 12% Value Added Tax (VAT).

These tax rules mean Filipino crypto users need to keep detailed records. Failure to report crypto transactions can lead to penalties. The government made it clear: if you're trading or using crypto in the Philippines, you're responsible for paying the right taxes. This is part of a larger effort to bring digital assets into the formal financial system.

Global Context: Other Countries' Actions

The Philippines isn't alone in cracking down on unlicensed crypto exchanges. Thailand's SEC blocked five exchanges, including Bybit and OKX, in May 2025. Indonesia raised its tax rate on offshore crypto trades from 0.2% to 1% in 2025. These moves show a regional trend toward stricter oversight.

Why the global push? Because unregulated exchanges often lack safeguards. When exchanges collapse or get hacked, users lose money with no recourse. Countries like the Philippines are trying to prevent this by requiring exchanges to meet strict standards before operating locally. It's about protecting everyday investors, not just regulating for the sake of it.

Person protected by regulatory shield surrounded by crypto symbols

Challenges and Workarounds

Even with network-level blocks, some users may still access blocked exchanges using virtual private networks (VPNs). Experts warn that this comes with risks. Using a VPN to access unlicensed platforms means you're operating outside regulatory protections. If something goes wrong, you have no legal recourse.

PLDT's CEO recently stated that the company is investing in better cybersecurity tools to combat such workarounds. But the reality is, technical blocks can be bypassed. The real solution is for exchanges to comply with local laws and for users to choose licensed platforms.

Why This Matters for Filipino Investors

For everyday crypto users in the Philippines, this crackdown is about safety. Unlicensed exchanges often lack proper security measures. Without SEC oversight, there's no guarantee your funds are safe. The new rules ensure that any platform operating in the Philippines has real financial backing and follows strict rules.

Remember: if an exchange isn't registered with the SEC, it's not safe to use. The government made it clear that these platforms were operating illegally. Choosing licensed exchanges means your assets are protected by Philippine law. That's a big step toward a safer crypto market.

Frequently Asked Questions

What happens if I use one of the blocked exchanges?

Using a blocked exchange means you're operating outside Philippine regulations. Your funds aren't protected, and you risk losing money if the exchange fails or gets hacked. The SEC explicitly warned that these platforms aren't authorized to operate in the country. It's best to switch to a licensed exchange to keep your assets safe.

Can I still trade crypto in the Philippines?

Yes, but only through SEC-licensed exchanges. As of 2026, there are several licensed platforms operating in the country. Always check the SEC's official list of registered Crypto Asset Service Providers before trading. This ensures your transactions are legal and your funds are protected.

How do I know if an exchange is licensed?

The Philippine SEC publishes a list of all registered Crypto Asset Service Providers on their official website. You can also contact the SEC directly to verify an exchange's status. Never assume an exchange is licensed just because it's popular-always check for yourself. Unlicensed platforms often mimic legitimate ones to trick users.

What are the tax implications for crypto in the Philippines?

As of 2025, capital gains from crypto transactions are taxed at 15%. This applies when you sell crypto for fiat or exchange it for goods. Income from mining, staking, or receiving crypto as payment is taxed as regular income. Additionally, buying goods with crypto now incurs a 12% VAT. Always keep detailed records to ensure accurate tax reporting.

Why did the SEC target these specific exchanges?

The SEC targeted exchanges that were operating without proper registration and failed to meet the new regulatory requirements. These platforms didn't have the required capital, didn't separate customer funds, and didn't report to regulators. The SEC's action was based on concrete evidence of non-compliance, not just suspicion. This ensures only trustworthy platforms operate in the Philippines.