Philippines SEC Orders Crypto Exchange Shutdown Over Licensing

The Philippines Securities and Exchange Commission (SEC) has ordered ten major global crypto exchanges to cease operations in the country due to licensing violations under new rules effective July 2025.

This event highlights regulatory tightening, possibly affecting crypto trading strategies and user asset movements in the region.

The Philippines SEC directive affects exchanges like OKX, Bybit, and Kraken, who lack local licenses under the revised compliance rules. Effective July 2025, these regulations intensify the country’s oversight of crypto operations.

Leadership at targeted exchanges includes notable figures such as Lennix Lai of OKX and Ben Zhou of Bybit. They have yet to publicly address the Philippine government’s demands about their role in crypto markets.

“They continue to market crypto-asset services to the Philippine public without the required license.” – Emilio B. Aquino, Chairperson, Philippine SEC

The SEC’s actions potentially disrupt user access to exchange services, impacting trading and liquidity of major cryptocurrencies like BTC, ETH, and altcoins. Historically, such measures have led to user migration to decentralized exchanges.

Historically, other nations, including Thailand and Indonesia, have implemented similar restrictions on crypto platforms, resulting in increased reliance on decentralized and peer-to-peer markets for users seeking uninterrupted service access.

Due to the crackdown, financial shifts in terms of trading volumes and token flows may be observed. Historical precedents suggest temporary market disruptions, eventually settling with increased DeFi reliance. Regulatory actions highlight the need for compliance among global exchanges.