On Aug. 4, the SEC issued a public warning advising residents to avoid engaging with these unregistered platforms, which have not secured licenses to operate or solicit investments within the Philippines.
“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.”
The SEC emphasized that these platforms pose significant risks to users. According to the regulator, individuals who engage with these unregistered platforms could be exposed to potential financial losses without legal recourse.
Furthermore, the SEC highlighted concerns about the dangers of fraud, market manipulation, and identity theft, which could affect Filipino users.
In addition to these risks, the SEC raised alarms about the platforms’ potential involvement in illicit activities such as money laundering and terrorist financing (ML/TF).
The regulator expressed concern over the risk of these exchanges being used for cross-border financial crimes, which could draw international scrutiny and put the Philippines at risk of being added to the global financial watchlist.
This move is unsurprising considering the Philippines remains one of the top global crypto adopters, according to a 2024 Chainalysis report.
The SEC is also considering more severe steps to curb unauthorized promotions, such as cease-and-desist orders, criminal complaints, and international cooperation with major tech firms like Google, Apple, Meta, and TikTok.
