Regulatory Gatekeepers Close Ranks on Unlicensed Crypto Exchanges

The Securities and Exchange Commission (SEC) of the Philippines has taken decisive action, blocking access to major global cryptocurrency exchanges Coinbase and Gemini. This move is part of a broader, intensified crackdown on Virtual Asset Service Providers (VASPs) operating without the necessary local licenses.

The Philippine SEC confirmed that it has issued orders to internet service providers to restrict access to the platforms' websites. The regulator stated that both exchanges are not registered corporations in the Philippines and lack the required licenses to solicit investments or operate as a trading platform.

A Clear Signal to the Global Crypto Industry

This enforcement action sends an unambiguous message to the international cryptocurrency sector. "The Commission has identified several unregistered entities engaging in such activities and has taken steps to block their access in the Philippines," the SEC said in a statement. The policy underscores a growing trend where national regulators are demanding formal, localized compliance from global digital asset firms, moving beyond mere registration in offshore jurisdictions.

The crackdown is rooted in the Philippines' regulatory framework for VASPs, which mandates that any entity offering crypto-related services must secure formal approval from the Bangko Sentral ng Pilipinas (BSP), the nation's central bank. This includes exchanges, wallet providers, and trading platforms.

  • Mandatory Licensing: All VASPs must now obtain a license from the BSP to legally operate and solicit Filipino users.
  • Investor Protection: The SEC cited the need to protect the investing public from the risks of dealing with unregistered entities, including potential fraud.
  • Market Integrity: The drive aims to bring clarity and integrity to the local digital asset ecosystem by ensuring all players adhere to the same rules.

Analysts suggest this could be a precursor to similar actions against other prominent international exchanges that have yet to secure local licenses, potentially reshaping how Filipinos access the global crypto market.