SEC Philippines Crypto Enforcement Actions: What You Need to Know in 2026

The SEC Philippines isn’t banning cryptocurrency. But if you’re using an unregistered exchange like Bybit, KuCoin, or OKX to trade crypto in the Philippines, you’re already operating outside the law - and the SEC is moving fast to shut them down.

Why the SEC Is Cracking Down

In May 2025, the Securities and Exchange Commission of the Philippines rolled out its first-ever full regulatory framework for crypto businesses. Called the Crypto Asset Service Provider (CASP) rules, these regulations were born from real pain: the 2022 collapse of Celsius and FTX left thousands of Filipinos with lost savings. By 2024, the Philippine National Police reported over 1,200 crypto-related fraud cases - many tied to offshore platforms with no accountability.

The SEC didn’t want to stop crypto. They wanted to protect ordinary people. Most Filipinos using crypto aren’t day traders. They’re sending remittances home - averaging $287 per transaction - or saving small amounts in digital assets because traditional banks don’t serve them well. These users aren’t crypto experts. They trust apps that look legit. And too many of those apps were hiding behind offshore servers, with no legal responsibility if things went wrong.

The Binance case in 2024 proved the SEC could act. After a year of warnings, the SEC ordered Binance to stop operating in the Philippines. They worked with internet providers to block access. App stores removed the app. Within 90 days, Binance fully exited. And guess what? Crypto fraud reports dropped by 67% in the next six months.

What the CASP Rules Actually Require

If you want to offer crypto services to Filipinos legally, you must become a registered CASP. It’s not a simple form. Here’s what it takes:

• Be a Philippine-incorporated company - no offshore shells allowed.
• Have at least ₱100 million (about $1.8 million USD) in paid-up capital.
• Have a physical office in the Philippines.
• Keep customer funds completely separate from company money - no mixing.
• Store 95% of customer crypto in cold wallets.
• Use blockchain analytics tools to flag transactions over ₱50,000 ($900 USD).
• Offer 24/7 customer support and process withdrawals within 72 hours.
• Pass ISO 27001 cybersecurity audits.
• Submit monthly financial reports to the SEC’s PhiliFintech Innovation Office.

These aren’t suggestions. They’re non-negotiable. And they’re designed to prevent another FTX-style collapse. If a CASP goes under, customer funds are still safe because they’re locked in segregated accounts.

Who’s Being Targeted Now

On August 1, 2025, the SEC publicly named ten major global exchanges operating illegally in the Philippines:

• OKX
• Bybit
• KuCoin
• Kraken
• LBank
• CoinW
• Bitget
• MEXC
• Huobi
• Gate.io

These platforms are not registered. They’re not complying. And the SEC is treating them the same way it treated Binance: website blocks, app removals, and public warnings.

Starting September 1, 2025, internet service providers began restricting access to these sites. Users trying to log in now see error messages - not because the platforms are down, but because the government blocked them. The SEC doesn’t need to shut them down globally. They just need to make them unusable inside the Philippines.

What Happens If You Don’t Comply

The penalties are serious - and they’re being enforced.

• First violation: ₱50,000 to ₱10 million ($900-$180,000 USD) in fines.
• Each day of continued violation: ₱10,000 ($180 USD) added daily.
• Criminal charges: up to ₱2 million ($36,000 USD) in fines and five years in prison.

The SEC doesn’t just fine companies. They go after the people running them. In one case, a local agent for an unregistered exchange was arrested in July 2025 for helping users bypass blocks. He faces criminal charges.

The goal isn’t punishment. It’s deterrence. The SEC wants platforms to know: register, or disappear.

What This Means for You

If you’re a regular user:

• Stop using unregistered exchanges. They’re being blocked. Your funds aren’t protected.
• Check if your platform is on the SEC’s official CASP registry. Only platforms listed there are legal.
• Withdraw your funds from banned platforms before they shut down completely. The SEC gave Binance users 90 days - don’t wait until the last minute.

If you’re a local crypto business:

• Start your CASP application now. Processing takes 45-120 days.
• You’ll need legal help. The paperwork is complex - business plans, risk matrices, cybersecurity audits.
• The SEC offers free webinars every Wednesday at 10 AM (PST) and a 24/7 hotline: +632-8981-7963.

The Bigger Picture

The Philippines is not alone. Indonesia and Malaysia introduced similar rules in early 2025. But the Philippines stands out: it’s the only country in Asia requiring full domestic incorporation. Singapore lets foreign firms register locally. Thailand allows representative offices. The Philippines says: if you want to serve Filipinos, you must be Filipino-owned and headquartered here.

This is a bold move. It’s expensive for startups. Only about 12 of the 240 crypto platforms operating in the Philippines currently meet the requirements. That means fewer choices - but more safety.

Some users are frustrated. Reddit threads are full of complaints about losing access to better interfaces and lower fees. But many others are relieved. One top comment on r/PhilippinesCrypto said: “I lost 150,000 PHP on Celsius in 2022. These rules might be strict, but they’ll save others from the same fate.”

Social media sentiment shows 58% support for the crackdown. People are tired of scams. They want legitimacy.

What’s Next?

By Q1 2026, the SEC plans to launch the Crypto-Asset Investor Compensation Fund. It’ll be funded by CASP registration fees - 0.05% of gross revenue - and could grow to ₱250 million ($4.5 million USD) per year. If a registered CASP fails, users can claim compensation from this fund.

The SEC also plans to regulate DeFi protocols by 2027. Right now, decentralized exchanges and yield farms are exempt. But that won’t last. Smart contracts aren’t immune to risk. Liquidity pools can be drained. The SEC is watching.

The long-term vision? A stable, transparent crypto market where Filipinos can trade safely - not just gamble.

Final Reality Check

This isn’t about stopping innovation. It’s about stopping fraud. The SEC isn’t trying to kill crypto. They’re trying to make it work for real people - not just speculators and offshore operators.

If you’re using a platform that doesn’t show up on the SEC’s official CASP list, you’re taking a risk. No warning. No recourse. No protection.

The clock is ticking. The blocks are coming. And this time, there won’t be a 90-day grace period.