Key Takeaways

• The Philippines SEC has blacklisted 15 major crypto exchanges for operating without a local license.
• New CASP rules require a minimum capital of 100millionPHP and a physical Philippine office.
• Major ISPs are blocking access; users must switch to compliant platforms or use VPNs.
• The crackdown mirrors similar moves in Thailand and Indonesia, signaling a regional tightening of crypto rules.
• Compliance pathways include registering as a domestic corporation, separating customer funds, and filing monthly reports.

Anyone who tried to trade on platforms like OKX or Bybit in August 2025 suddenly saw a "blocked" page instead of the usual login screen. That wasn’t a glitch-it was the result of the Philippines Securities and Exchange Commission (the SEC) enforcing its first comprehensive Crypto Asset Service Provider (CASP) framework. The agency’s Philippines crypto exchange blacklist now includes fifteen of the world’s biggest exchanges, and the move reshapes how Filipino traders can access digital assets.

What triggered the crackdown?

In May 2025 the SEC released two memorandum circulars-No.4 and No.5-that set out the country’s inaugural CASP rules. The regulations demand that any crypto service provider operating in the Philippines must:

1. Register as a domestic corporation with at least 100millionPHP (≈US$1.8million) paid‑in capital.
2. Maintain a physical office within Philippine territory.
3. Separate customer funds from corporate accounts.
4. Submit detailed monthly financial statements to the SEC.

Violations can incur fines from 50,000 to 10millionPHP per breach, plus a daily penalty of 10,000PHP for continued non‑compliance. The SEC’s aggressive stance follows a 2024 action that forced Binance to exit the market after a 90‑day wind‑down period.

Timeline of the blacklist

The enforcement timeline moves quickly:

How the block works on the ground

Within days of the August 1 advisory, the two largest telecom operators-PLDT (Philippines Long Distance Telephone Company) and Globe Telecom (the country's leading mobile network provider)-started redirecting traffic to a notification page that cites the SEC’s violation notice. The page informs users that the site is blocked under Philippine law and advises them to seek a compliant alternative.

For a typical trader, the experience is a sudden “Connection blocked” error, followed by a banner that reads: “Access to this cryptocurrency exchange is restricted by the Securities and Exchange Commission.” Many users resort to VPN services, but VPN usage is itself under scrutiny because regulators view it as a circumvention tactic.

Impact on the listed exchanges

These platforms aren’t small niche services; they account for a large share of global trading volume. OKX (one of the world’s top three crypto exchanges by volume) alone processes billions of dollars daily and has a sizable Filipino user base. Bybit is known for high‑leverage derivatives, while KuCoin offers an extensive alt‑coin menu. Kraken, despite its reputation for regulatory compliance elsewhere, fell short on the new local fund‑segregation rule.

Because the blacklist applies uniformly, the SEC has not shown leniency for exchanges that already comply with regulations in other jurisdictions. This signals that the Philippines is building a “level playing field” based on local law, not on an exchange’s global reputation.

What Filipino traders can do now

Facing a blocked platform, traders have three practical options:

• Switch to a compliant exchange. Several platforms-such as Binance PH (the locally registered Binance subsidiary) and Coins.ph (a homegrown Filipino crypto wallet and exchange)-have already secured SEC registration and therefore remain accessible.
• Use a VPN with caution. While a VPN can restore access, it may expose users to additional security risks and could be flagged by future ISP‑level filtering.
• Withdraw funds before the deadline. The SEC gave a 30‑day grace period for users to move assets from the blacklisted platforms. After that, withdrawals could be delayed or subjected to additional scrutiny.

Regardless of the path chosen, traders should keep records of all transactions and stay alert for official SEC notices.

Regional ripple effects

The Philippines is not acting in isolation. In May 2025, Thailand’s SEC ordered the blocking of five exchanges-including Bybit and OKX-citing anti‑money‑laundering concerns. Meanwhile, Indonesia has hiked its crypto tax rates, moving from 0.1% to 0.21% on domestic trades and from 0.2% to 1% on offshore trades. These coordinated moves point to a Southeast Asian trend: regulators are demanding higher transparency, local presence, and tax contributions from global crypto firms.

For exchanges, the combined effect is a steep increase in compliance costs. Setting up a Philippine office, raising 100millionPHP in paid‑in capital, and maintaining monthly reporting can run into several million dollars per year. Smaller players may opt to exit the market altogether, leaving space for domestic startups that can meet the requirements more easily.

Future outlook and compliance tips

The SEC has warned that the blacklist could grow. Any platform that “onboards Philippine users without registration” will face enforcement. Here’s a short checklist for exchanges that want to stay in the market:

1. Incorporate a Philippine subsidiary and meet the 100millionPHP capital floor.
2. Secure a physical office address-co‑working spaces are acceptable if they provide a permanent lease.
3. Implement a transparent segregation system for client assets, ideally using segregated bank accounts.
4. Build a reporting pipeline that can generate monthly financial statements in the format required by the SEC.
5. Establish a compliance liaison with the SEC to address any queries promptly.

Exchanges that follow these steps can continue to serve Filipino users without interruption. For traders, the safest bet is to stick with platforms that have already earned SEC registration.