Philippines Securities and Exchange Commission (SEC) takes action against OKX, Bybit, and Kraken, justifying it on the grounds of 'national security'

Philippines Securities and Exchange Commission (SEC) takes action against OKX, Bybit, and Kraken, justifying it on the grounds of 'national security'

The Philippine Securities and Exchange Commission (SEC) has taken a firm stance against unauthorized cryptocurrency platforms operating within the country. Here's a rundown of the current regulations and recent actions:

Current Regulations

The SEC has established a comprehensive framework for cryptocurrency operations in the Philippines through Memorandum Circular No. 4 and No. 5. These regulations require all crypto service providers to register as domestic corporations, with key requirements including:

• A minimum capital of 100 million pesos (about $1.8 million).
• Maintenance of physical offices in the Philippines.
• Submission of detailed financial reports monthly.
• Strict separation of customer funds from company assets.

Actions Against Unauthorized Platforms

The SEC has issued a public advisory targeting ten major cryptocurrency exchanges for operating without proper licenses. These platforms include OKX, Bybit, Kraken, KuCoin, MEXC, Bitget, Phemex, CoinEx, BitMart, and Poloniex.

Unregistered platforms face penalties such as cease-and-desist orders, fines ranging from 50,000 to 10 million pesos per violation, and additional daily penalties of 10,000 pesos for ongoing violations. The SEC also collaborates with tech giants like Google, Apple, and Meta to block access to these platforms.

By July 2025, the SEC ordered the shutdown of several major exchanges, including OKX, Bybit, KuCoin, and Kraken, for operating without local licenses. This action aims to protect investors from risks such as fraud and data breaches.

Future Implications

The SEC's actions are part of a broader strategy to enhance investor protection and ensure market integrity in the Philippines' expanding digital asset sector. This regulatory environment may lead users to migrate to compliant platforms or decentralized exchanges, potentially impacting regional crypto liquidity.

The SEC has expressed concerns about national security risks tied to unauthorized crypto platforms, including potential money laundering and terrorist financing. The SEC previously asked Google and Apple to remove Binance's app from local app stores due to investor protection concerns.

The SEC's efforts to regulate the crypto industry align with Southeast Asia's trend of tightening crypto regulations, reinforcing market integrity through stricter compliance requirements. The SEC has cautioned Filipino investors against engaging with these offshore platforms due to their failure to comply with the newly enforced SEC CASP Rules and Guidelines that took effect on July 5, 2025.

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1. In response to concerns about unauthorized cryptocurrency platforms, the SEC has ordered the shutdown of several major exchanges like OKX, Bybit, KuCoin, and Kraken by July 2025 for operating without local licenses.
2. The SEC's regulatory efforts maintain a strict separation of customer funds from company assets, requiring all crypto service providers to register as domestic corporations and submit detailed financial reports monthly.
3. To ensure market integrity, the SEC collaborates with tech giants like Google, Apple, and Meta to block access to unregistered cryptocurrency platforms such as OKX, Bybit, KuCoin, and others that operate without proper licensing.

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