Internet users in the Philippines began losing access to major global cryptocurrency exchanges this week after local internet service providers moved to block dozens of online trading platforms following orders from regulators.
Among the platforms affected were Coinbase and Gemini, two of the largest U.S.-based crypto exchanges, which users reported became inaccessible across multiple Philippine ISPs as of Tuesday. Independent checks confirmed the disruptions.
Philippine Crackdown Leaves Traders Scrambling After Platforms Are Blocked
The blocks followed a directive from the National Telecommunications Commission, which instructed ISPs to immediately restrict access to 50 online trading platforms identified by the Bangko Sentral ng Pilipinas as operating without authorization.
The NTC said the order was issued after a formal request from the central bank to disable the websites and applications of unlicensed virtual asset service providers as part of an ongoing effort to enforce local registration and licensing rules.
According to the NTC, the action is grounded in updated financial regulations under BSP Circular No. 1206, which outlines how virtual asset providers must operate within the country.
The framework places emphasis on consumer protection, financial stability, and the central bank’s authority to supervise entities involved in money services and digital assets under the New Central Bank Act.
By cutting access to noncompliant platforms, regulators said they are seeking to prevent continued exposure of the public to financial risks tied to unregistered services.
While the commission did not publish a complete list of the affected platforms, it acknowledged the public attention surrounding the blocking of large international exchanges and stated that additional global platforms could be impacted as enforcement continues.
To the investors, the short-term effect has been disastrous, with most users being caught unawares, with account and order cancellations and money withdrawals from frozen accounts not being possible on frozen platforms.
Local traders were reporting temporary asset liquidity freezes and attempts to transfer assets to foreign locations in a rush.
The regulators have made it clear that funds lost, stolen, or trapped due to enforcement measures have no legal redress to users of unregistered platforms.
Philippine Regulators Push Crypto Toward Licensed Channels
In addition to the temporary disturbance, the crackdown as described by authorities has been one of the larger changes in regulated crypto activity.
The Securities and Exchange Commission has underlined that licensed platforms must comply with regulations on fund segregation, disclosures, cybersecurity, and anti-money laundering controls.
Authorities believe that directing users to legitimate transactions would hamper their exposure to fraud, manipulation of the market, and unlawful financial transactions.
The most recent enforcement initiative is based on a sequence of regulatory measures in the last two years.
Towards the end of 2023, the Philippines started a 90-day grace period during which Binance could comply or face the blockage of the exchange by the ISPs in March 2024 and the removal of the exchange by major app stores.
More recently, at least 10 other unregistered platforms, such as OKX, Bybit, and Kraken, were warned by the SEC due to unauthorized operations and threatening investors and national security.
Meanwhile, regulators have been busy formulating new formal regulations in the sector. In December 2024, SEC published the draft Crypto-Assets Service Provider rule and made it available for public consultation, including licenses, disclosure policies, capital requirements, and cybersecurity requirements.
The commission has also introduced a regulatory sandbox that registered firms can use to test novel crypto products and be supervised.
Regulated crypto activity has been growing in spite of the crackdown against unlicensed platforms. The PDAX local exchange has launched remote worker stablecoin payroll services, and the crypto digital bank GoTyme has recently launched in-app crypto services on a licensed basis.
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