Key Takeaways
·
Philippine
regulators have blocked access to Coinbase and Gemini for operating without
local licenses.
·
The move is part
of a broader enforcement campaign targeting unregistered virtual asset service
providers.
·
Authorities say
the restrictions aim to protect consumers and enforce compliance with existing
rules.
The Philippines
has moved to restrict access to major global cryptocurrency platforms after
regulators ordered internet service providers to block Coinbase and Gemini for
operating without proper authorization. The action marks a significant
escalation in the country’s enforcement efforts against unlicensed virtual
asset service providers and signals a stricter approach to offshore crypto
firms serving local users.
The Securities
and Exchange Commission of the Philippines confirmed that access to Coinbase
and Gemini was blocked following findings that the exchanges were offering
services to Filipino residents without registering or securing the required
licenses. The regulator said both platforms were soliciting investments and
facilitating crypto trading despite lacking approval to operate within the
country.
The decision
matters because it highlights the growing willingness of regulators in
Southeast Asia to take direct action against large international crypto firms,
rather than relying solely on warnings or advisory notices. For local users,
the blocks limit access to two widely used platforms and reinforce the risks of
relying on services that operate outside domestic regulatory frameworks.
The Philippines
has required crypto exchanges and other virtual asset service providers to
register with the SEC and the central bank for several years. These rules are
designed to ensure compliance with anti money laundering standards, consumer
protection measures, and reporting obligations. Firms that fail to register are
considered to be operating illegally, regardless of their global presence or
reputation.
Coinbase and
Gemini are among the largest and most established crypto exchanges globally,
both regulated in multiple jurisdictions including the United States. However,
Philippine authorities have repeatedly stressed that foreign registration does
not substitute for local authorization. Regulators say any platform offering
services to residents must comply with domestic laws.
The blocks
follow earlier warnings issued by the SEC, which had publicly cautioned
investors against using unregistered platforms. In prior notices, the regulator
said it would coordinate with the National Telecommunications Commission to restrict
access to non compliant crypto websites. The move against Coinbase and Gemini
appears to be the most high profile enforcement step taken so far.
Regulators have
framed the action as part of a broader campaign to curb illegal investment
schemes and reduce consumer exposure to unregulated financial products. The
Philippines has seen repeated cases of crypto related fraud, including scams
that used offshore platforms to solicit funds from local investors. Authorities
say blocking access is intended to prevent further losses and encourage users
to shift to licensed providers.
The enforcement
comes amid a tightening of crypto oversight across the region. Countries such
as Thailand, Indonesia, and Vietnam have also stepped up monitoring of digitalasset platforms, particularly those operating cross border without local
approval. In several cases, regulators have combined public warnings with
technical restrictions on access.
For the local
crypto industry, the move may benefit exchanges that have completed registration
and licensing processes. Licensed platforms have argued that uneven enforcement
disadvantages compliant firms while allowing offshore competitors to attract
users without meeting the same standards. Blocking unregistered exchanges could
help level the playing field, though it may also reduce choice for consumers.
Market impact
from the blocks has been limited so far. Trading volumes on Coinbase and Gemini
are largely driven by users in North America and Europe, and the Philippines
represents a relatively small share of their global activity. However, the
decision adds to a growing list of jurisdictions where access to major
exchanges is restricted due to licensing issues.
Industry
observers say the case underscores the importance of regulatory engagement as
crypto firms expand internationally. Operating across borders without clear
approval has become increasingly risky as governments gain experience and
technical capacity to enforce digital restrictions. Even well capitalized
exchanges are not immune from local crackdowns if they fail to comply with
national rules.
What happens
next will depend on whether Coinbase and Gemini seek registration in the
Philippines or choose to exit the market permanently. Regulators have indicated
that unregistered platforms can apply for licenses, provided they meet capital,
governance, and compliance requirements. Until then, access is expected to
remain blocked.
The Philippine SEC has also warned that additional
platforms may face similar action if they continue to operate without
authorization. The message from regulators is that size and global standing do
not exempt crypto firms from local laws, and that enforcement is likely to
intensify as digital assets become more embedded in the financial system.