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

When the SEC Philippines cracked down on Binance in 2024, it wasn’t just a warning-it was a turning point. For millions of Filipinos using crypto, the message was clear: if you’re offering services here, you play by our rules. By July 2025, that rulebook became law. The Crypto Asset Service Provider (CASP) framework is now active, and enforcement isn’t slowing down. This isn’t about banning crypto. It’s about protecting everyday investors who lost money when exchanges collapsed. If you’re trading, investing, or running a platform in the Philippines, you need to know exactly what’s happening.

What the SEC Actually Did

The Philippines Securities and Exchange Commission didn’t wait for chaos. After seeing how FTX’s collapse hurt users globally, they built a system designed to stop that from happening here. In May 2025, they issued two binding documents: SEC Memorandum Circular No. 4 and No. 5. These aren’t suggestions. They’re legal requirements that took effect on July 5, 2025.

Any company-local or foreign-that lets Filipinos buy, sell, trade, or store crypto must now register as a CASP. That means you can’t just operate from overseas and hope no one notices. You need to be a Philippine-incorporated company. You need a physical office in the country. You need to prove you have at least ₱100 million (about $1.8 million USD) in paid-up capital. And you must keep customer funds completely separate from your own money. No mixing. No borrowing. No using investor cash to cover your bills.

That last point is huge. In 2022, when Celsius and other platforms failed, users lost everything because their money wasn’t protected. The SEC learned from that. Now, every CASP must show they use cold storage for at least 95% of customer assets. They must also run monthly security audits and use blockchain analytics tools to track transactions over ₱50,000. If a transaction looks suspicious, the system flags it automatically.

Who’s Being Targeted

The SEC’s first big win was forcing Binance out. They didn’t shut it down overnight. They gave users 90 days to withdraw funds. By October 2024, Binance had fully exited. No more access. No more deposits. No more trading.

That was just the start. In August 2025, the SEC named ten major platforms still operating illegally: OKX, Bybit, KuCoin, Kraken, LBank, CoinW, and four others. These aren’t small players. They’re global giants. And now, they’re being blocked.

How? The SEC works with internet providers to cut off website access. They ask Apple and Google to remove their apps from local app stores. They issue public warnings through TV, radio, and social media. They even coordinate with the National Telecommunications Commission to enforce these blocks. If you’re using one of these platforms today, you’re already at risk.

What Happens if You Don’t Comply

The penalties aren’t soft. For each violation, a platform can be fined between ₱50,000 and ₱10 million (roughly $900 to $180,000 USD). If they keep operating, they get hit with an extra ₱10,000 per day-every day. That adds up fast.

But the real threat is criminal. Under the Securities Regulation Code, individuals running unregistered platforms can face up to five years in jail and a fine of ₱2 million ($36,000 USD). That’s not just a corporate penalty-it’s personal.

And it’s not just about the big exchanges. If you’re running a local crypto kiosk, a peer-to-peer trading desk, or even a small wallet service, you’re still covered under these rules. The SEC doesn’t care if you’re big or small. If you’re serving Filipinos, you need to register.

What About Decentralized Finance (DeFi)?

This is where things get interesting. The SEC made it clear: DeFi protocols-like Uniswap, Aave, or Compound-are not required to register. Why? Because they’re decentralized. No company owns them. No CEO answers to regulators.

But here’s the catch: CASPs can’t offer DeFi-style yield products unless they get special SEC approval. And even then, they can’t promise more than 20% annual returns. That’s a hard line. Many platforms used 15-30% APY to lure users. Now, those offers are illegal unless they’re pre-approved.

This isn’t meant to kill innovation. It’s meant to stop scams. In 2022, many Filipinos lost money on fake yield farms that promised moonshots but vanished overnight. The SEC is trying to make sure that doesn’t happen again.

How Many People Are Affected?

Chainalysis estimated that 15 million Filipinos-about 9% of the population-used crypto in 2024. That’s the third-largest crypto market in Southeast Asia. But here’s the problem: 85% of those users were accessing services through unregistered international platforms.

That means the SEC’s enforcement actions are hitting the vast majority of crypto users in the country. Early data shows that after Binance was blocked, reported crypto fraud dropped by 67%. That’s a massive win for investor safety.

But it’s not all smooth sailing. Fitch Ratings predicts transaction volumes will drop 35-40% in the short term. Why? Because many users don’t want to switch to local platforms that are still getting set up. The SEC admits that fewer than 5% of current crypto service providers meet all the CASP requirements. That’s a huge gap.

What’s Next for the Philippines?

The SEC isn’t done. By Q1 2026, they plan to launch the Crypto-Asset Investor Compensation Fund. This is a safety net. If a registered CASP fails, users can file claims for lost funds. The fund will be paid for by a 0.05% fee on each CASP’s gross revenue. Based on current market size, it could grow to ₱250 million ($4.5 million USD) per year.

By 2027, the SEC says they’ll start regulating DeFi protocols. Not because they want to ban them-but because smart contracts can still be exploited. Liquidity pools can be drained. Code can have bugs. The SEC wants to build oversight before the next big loss happens.

Meanwhile, other countries are watching. Indonesia and Malaysia tightened their rules in early 2025. But the Philippines stands out. Unlike Singapore, which lets foreign firms register locally, the Philippines demands full incorporation. That’s stricter than almost anywhere else in Asia-second only to China’s total ban.

What Should You Do?

If you’re a user: Stop using unregistered platforms. The apps are being removed. The websites are being blocked. Your funds are at risk. Look for CASP-registered services. The SEC has a public list on their website. Use only those.

If you’re a business: Register now. The deadline isn’t coming. It’s already here. The registration portal is live. You need your business incorporated, your capital verified, your cybersecurity certified (ISO 27001), and your AML protocols in place. The SEC offers weekly Zoom town halls and a 24/7 hotline (+632-8981-7963). Don’t wait until you’re blocked.

If you’re a developer or investor: The market is shifting. Local platforms are getting funding. New startups are popping up. The rules are tough, but they’re creating real opportunities. The days of offshore platforms dominating the Philippines are over. The future belongs to those who comply.

Why This Matters

Most Filipinos use crypto for remittances. The average transaction is $287. These aren’t traders. These are families sending money home. They don’t understand blockchain. They just want their money to arrive safely. The SEC’s rules are built around protecting them-not stopping innovation, but making sure innovation doesn’t come at the cost of people’s savings.

It’s not perfect. Some users miss the old platforms. Some say the rules are too strict. But after losing millions in past crashes, the public mostly supports this. On Reddit’s r/PhilippinesCrypto, the top comment said: "I lost 150,000 PHP on Celsius in 2022-these rules might be strict but they’ll save others from the same fate."

The message is clear: in the Philippines, crypto isn’t going away. But it’s changing. And if you want to be part of it, you have to play by the new rules.