The Philippine Securities and Alternate Fee (SEC) has flagged ten distinguished crypto exchanges, together with OKX, Bybit, KuCoin, and Bitget, for working within the nation with out the required approval.
On Aug. 4, the SEC issued a public warning advising residents to keep away from partaking with these unregistered platforms, which haven’t secured licenses to function or solicit investments inside the Philippines.
The monetary regulator added:
“This listing is just not exhaustive. Different platforms providing related companies to the Philippine public with out registration or SEC approval are likewise thought of to be working in violation of Philippine securities legal guidelines.”
The SEC emphasised that these platforms pose vital dangers to customers. Based on the regulator, people who interact with these unregistered platforms may very well be uncovered to potential monetary losses with out authorized recourse.
Moreover, the SEC highlighted considerations concerning the risks of fraud, market manipulation, and id theft, which might have an effect on Filipino customers.
Along with these dangers, the SEC raised alarms concerning the platforms’ potential involvement in illicit actions corresponding to cash laundering and terrorist financing (ML/TF).
The regulator expressed concern over the chance of those exchanges getting used for cross-border monetary crimes, which might draw worldwide scrutiny and put the Philippines liable to being added to the worldwide monetary watchlist.
This transfer is unsurprising contemplating the Philippines stays one of many prime international crypto adopters, in line with a 2024 Chainalysis report.
The warning follows the SEC’s earlier resolution to dam entry to Binance’s web site within the Philippines, signaling that related actions may very well be taken in opposition to the flagged exchanges.
The SEC can be contemplating extra extreme steps to curb unauthorized promotions, corresponding to cease-and-desist orders, prison complaints, and worldwide cooperation with main tech companies like Google, Apple, Meta, and TikTok.
The Philippine authorities’s actions mirror a broader regional pattern, significantly in Asia, the place authorities are tightening laws on crypto platforms.
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