MANILA, Philippines — The Securities and Exchange Commission (SEC) warned Filipinos against engaging in unregistered cryptocurrency platforms after it discovered at least 10 websites offering crypto-asset services without a proper license to operate.
In an advisory published on Monday, August 4, the SEC said that unauthorized cryptocurrency platforms pose a “significant risk” to Filipino investors, who could lose all their investments, have no legal recourse, and become vulnerable to fraud, market manipulation and identity theft.
“The Commission likewise warns the public that unregistered crypto-asset platforms may be exploited for money laundering and terrorist financing,” the SEC added.
It said Philippine laws like the Anti-Money Laundering Act require virtual asset service providers (VASPs) to implement strong safeguards, such as customer due diligence, suspicious transaction reporting and recordkeeping.
What is cryptocurrency? Cryptocurrency is a type of digital currency used for online transactions. Unlike physical money or payments made through banks and credit cards, cryptocurrencies like Bitcoin exist only in digital form and are stored in the cloud or on a digital wallet.
Instead of being verified by a central authority like banks, transactions are confirmed through a peer-to-peer network using blockchain technology.
Without registration, crypto platforms are not monitored by Philippine regulators, rendering their anti-money laundering systems weak or ineffective. Filipino investors may also end up causing illegal money to flow in and out of the country by engaging with unauthorized platforms.
“This creates serious vulnerabilities that have been repeatedly flagged by the Financial Action Task Force,” the SEC said.
“Continued public access to such platforms may expose the country to cross-border illicit finance and reputational risks, including concerns related to gray-listing,” it added.
What investors should do
The SEC issued a list of do’s and don’ts for Filipino investors, with the most important reminder: avoid investing or trading through crypto-asset platforms that are not registered with the commission.
It urged the public to stay cautious and vigilant of crypto promotions or marketing, particularly those from influencers, content creators, or mobile apps targeting Filipino users.
Should Filipinos find any suspicious activity from crypto-asset platforms, including the unauthorized selling or marketing of assets, the SEC said this can be reported immediately to the following bodies:
* Enforcement and Investor Protection Department: [email protected].
* Cyber and Forensics Division: [email protected]
The public may also request the registration and licensing status of cryptocurrency platforms they seek to engage with by sending an email to [email protected].
Once the SEC suspects dubious websites on cryptocurrency, it may launch a motu proprio, or self-initiated, investigation to pursue legal and regulatory action against violators. It may also act on complaints filed by the public.
The commission may respond by issuing cease and desist orders, requesting the blocking of websites and apps, filing criminal complaints and collaborating with global platforms to remove unlicensed marketing content.
Unregistered crypto-asset websites
Here is the list of platforms offering or marketing crypto-asset services to Philippine users without the required registration and license from the SEC.
