SEC Philippines Crypto Enforcement Actions: What You Need to Know in 2025

On July 5, 2025, the Philippines Securities and Exchange Commission (SEC) turned off the lights on dozens of unlicensed crypto exchanges. Not with a bang, but with a legal order that forced platforms like Binance out of the market - and now, they’re coming for OKX, Bybit, KuCoin, and Kraken. This isn’t a crackdown. It’s a cleanup. And if you’re a Filipino trading crypto, you need to understand exactly what’s happening - and why.

Why the SEC Acted

In 2022, the collapse of FTX sent shockwaves through global crypto markets. In the Philippines, it hit harder than most. Thousands of retail investors lost life savings. The Philippine National Police recorded a spike in crypto fraud cases. People weren’t just losing money - they were losing trust. The SEC saw what happened in other countries: unregulated platforms promising 20% monthly returns, then vanishing overnight. They decided enough was enough.

The result? SEC Memorandum Circular No. 4 and No. 5, issued on May 30, 2025. These aren’t suggestions. They’re legal requirements. Every crypto service provider targeting Filipinos must now register as a Crypto Asset Service Provider (CASP). That means incorporation in the Philippines, a physical office here, and a minimum of ₱100 million (about $1.8 million USD) in paid-up capital. No exceptions.

What the Rules Actually Require

The SEC didn’t just slap on a license. They built guardrails. Here’s what every CASP must do:

• Segregate customer funds from company money - no more using your users’ crypto to cover operational costs.
• Keep 95% of customer assets in cold storage - offline, out of hackers’ reach.
• Use blockchain analytics tools to flag transactions over ₱50,000 (around $900 USD) for AML checks.
• Offer 99.5% platform uptime and process withdrawals within 72 hours.
• Submit monthly financial reports to the SEC’s PhiliFintech Innovation Office.
• Pass ISO 27001 cybersecurity audits - the same standard banks use.

And here’s the kicker: if you’re offering yield products - staking, lending, anything that pays interest - you can’t go above 20% annual yield without SEC approval. That shuts down the high-risk, high-reward schemes that lured in inexperienced investors.

The Enforcement Strategy

The SEC didn’t wait. On August 1, 2025, they publicly named ten unregistered platforms: OKX, Bybit, KuCoin, Kraken, LBank, CoinW, and six others. The same playbook used against Binance in 2024 is now rolling out again.

Here’s how it works:

1. Public advisory: The SEC warns users: "This platform is not registered. Your money is at risk."
2. App store removal: Google Play and Apple App Store are asked to delist the apps.
3. ISP blocking: Internet service providers are ordered to block access to the platforms’ websites.
4. Fines and jail time: First offense? Up to ₱10 million ($180,000 USD). Ongoing violation? An extra ₱10,000 ($180 USD) per day. Repeat offenders? Up to 5 years in prison and ₱2 million ($36,000 USD) in fines.

By September 1, 2025, most of these platforms were already inaccessible via local ISPs. The SEC’s enforcement team worked with the National Telecommunications Commission to make sure the blocks stuck. And unlike Binance’s 90-day wind-down, there’s no grace period this time. No exceptions.

Who’s Affected - And How

Chainalysis estimates 15 million Filipinos hold crypto. Of those, 85% - over 12 million people - were using unregistered platforms. That’s not a small group. That’s the entire market.

The immediate effect? A 30-40% drop in retail participation, according to the University of the Philippines. People are scared. Some are angry. Reddit threads like r/PhilippinesCrypto are full of posts like: "I can’t access my coins on Bybit anymore. What do I do?"

But here’s what most people don’t say out loud: many of them lost money before. User "CryptoPH2020" on Reddit summed it up: "I lost 150,000 PHP on Celsius in 2022 - these rules might be strict but they’ll save others from the same fate." The SEC’s data shows a 67% drop in crypto fraud cases after Binance was blocked. That’s not just a number. That’s real people who didn’t get scammed.

What This Means for Local Businesses

The rules aren’t just about shutting down foreigners. They’re about lifting up locals.

Before, Philippine-based crypto startups couldn’t compete. Why? Because Binance, Bybit, and KuCoin had zero overhead. No office. No taxes. No compliance. They offered better rates, faster withdrawals, and no paperwork. Local players couldn’t match that.

Now, the playing field is level. If you’re a Filipino company and you meet the CASP requirements, you can operate legally - and attract users who now trust the system. The SEC even created a dedicated registration portal with video tutorials in Tagalog and English. They’re holding weekly town halls. They’ve set up a 24/7 hotline.

But here’s the problem: only about 12 out of 240 active platforms in the Philippines meet the full requirements. The capital requirement alone - ₱100 million - is a wall for most startups. Experts say this could reduce competition and push innovation overseas.

What’s Next?

The SEC isn’t done. By Q1 2026, they plan to launch the Crypto-Asset Investor Compensation Fund. It’ll be funded by a 0.05% fee on CASP gross revenue. Projected annual income: ₱250 million ($4.5 million USD). If a registered platform fails, users could get partial reimbursement.

And by 2027, the SEC plans to bring DeFi under regulation. Smart contracts, liquidity pools, yield aggregators - all of it. Commissioner Maria Lourdes Limgenco said during a Senate hearing: "The next phase will address smart contract risks and liquidity pool vulnerabilities." The goal isn’t to kill crypto. It’s to make it safe. The Philippines is now one of the strictest crypto markets in Asia - second only to China’s outright ban. But unlike China, they’re not shutting it down. They’re trying to fix it.

What Should You Do?

If you’re a Filipino crypto user:

• Check if your platform is on the SEC’s official list of registered CASPs. (They publish it monthly.)
• If you’re on an unregistered platform, withdraw your funds ASAP. Don’t wait for the block.
• Don’t use VPNs to access blocked sites. That puts you back in the danger zone.
• Only invest in platforms that show their SEC registration number and physical office address.
• If you’re offered more than 20% annual yield, walk away. It’s not a bonus - it’s a red flag.

If you’re a local crypto business owner:

• Start the CASP registration process now. It takes 90-120 days.
• Get your ISO 27001 certification. Don’t delay.
• Set up your physical office. The SEC will verify it.
• Use the SEC’s free webinars and support tools. They’re there to help.

Is This a Ban?

No. Commissioner Kelvin Lee made it clear: "The CASP Rules do not prohibit cryptocurrency trading or investment." You can still buy Bitcoin, Ethereum, Solana - just not through unregulated platforms.

The SEC isn’t trying to stop you from trading. They’re trying to stop you from getting ripped off.

The market may shrink. Transaction volume could drop 35-40% in the short term. But long-term, Fitch Ratings predicts lower volatility and more stability. That’s good for everyone - especially the 68% of users who use crypto for remittances, not speculation.

This isn’t about control. It’s about care.