Unregistered cryptocurrency platforms poses a risk to the public, as per a warning issued by the Securities and Exchange Commission of the Philippines.

The Securities and Exchange Commission (SEC) of the Philippines has taken a firm stance against unregistered crypto platforms, as part of its ongoing efforts to protect Filipino investors from financial risks. The regulatory body has threatened to take legal and regulatory action, including Cease and Desist Orders, blocking access to websites and applications, and geo-blocking enforcement.

The SEC's recent move to block the website of the unlicensed investment platform Mitrade is a testament to its commitment. In partnership with the National Telecommunications Commission (NTC), the SEC successfully blocked Mitrade, which was found to be actively promoting its services to Filipinos without the proper registration.

The SEC's advisory highlights significant risks for Filipino investors, including total loss of funds, no legal recourse, exposure to fraud, market manipulation, and identity theft. The SEC also raises concerns about the potential for money laundering and terrorist financing (ML/TF) through unregulated entities.

All crypto-asset service providers must register as domestic corporations and have a minimum paid-up capital of P100 million, according to the VASP Rules. The SEC named five crypto platforms lacking registration in its 2025 advisory: Blofin, CoinW, DigiFinex, LBank, and Pionex. Bybit, Kraken, and eight other exchanges are also operating without the required registration or authorization from the SEC.

The SEC's actions could potentially reduce cross-border illicit finance and reputational risk for the country. The new frameworks establish the SEC Rules on Crypto-Asset Service Providers (VASP Rules) and their operational guidelines. These new regulations are supported by SEC Memorandum Circular Nos. 4 and 5, Series of 2025.

The SEC has demonstrated its willingness to take enforcement action against unregistered platforms, regardless of their nature (crypto exchanges or investment platforms). This approach underscores the SEC's commitment to maintaining a secure and transparent financial ecosystem for Filipino investors.

In conclusion, the SEC's actions serve as a reminder for the public to exercise caution when engaging with unregistered crypto platforms. The SEC encourages investors to verify the registration status of any platform before investing to ensure their funds are protected and their rights are upheld.