Philippine SEC Flags dYdX, Others as Unregistered Platforms
The Philippine Securities and Exchange Commission (SEC) has issued a public advisory warning investors to steer clear of dYdX and six other cryptocurrency trading platforms, citing their lack of registration and authorization to solicit investments in the country. The platforms in question include Aevo, gTrade, Pacifica, Orderly, Deriv, and Ostium, all of which allegedly offer investment opportunities promising returns without the required regulatory oversight.
Under the SEC's Crypto Asset Service Provider (CASP) framework, implemented in July 2025, all entities providing crypto-related services in the Philippines must register as stock corporations, meet a minimum capital requirement of ₱100 million, and secure specific licenses to operate. According to the SEC, none of the flagged platforms have complied with these rules, leaving investors exposed to significant risks, including potential losses and lack of legal recourse.
Notably, the SEC has also warned that individuals promoting these platforms in the Philippines could face criminal charges under the Securities Regulation Code. Violators risk fines of up to ₱5 million (approximately $89,000) or imprisonment for up to 21 years, or both. The regulator's enforcement efforts reflect a broader push to safeguard investors while cracking down on unauthorized operators in the crypto space.
Escalating Enforcement Against Unlicensed Platforms
This latest advisory is part of a sustained effort by Philippine regulators to tighten control over the local crypto market. In December 2025, the SEC blocked access to Coinbase and Gemini, citing their failure to secure necessary licenses. Earlier, in August 2025, the commission issued similar warnings against 10 platforms, including OKX, Bybit, KuCoin, and Kraken, for operating without proper authorization.
These enforcement actions highlight the Philippines' transition from issuing warnings to implementing restrictive measures, such as working with internet providers to block access to unlicensed platforms. While cryptocurrency trading remains legal, service providers must adhere to the CASP framework to operate lawfully in the country.
Balancing Enforcement and Innovation
Despite the crackdown, compliant firms are finding ways to innovate within the regulatory framework. For instance, PDAX, a licensed exchange, partnered with Toku in 2025 to enable stablecoin-based salary payouts for Filipino workers. Similarly, GoTyme, a digital bank, launched crypto services in partnership with Alpaca, allowing users to buy and hold digital assets through its platform. These developments demonstrate that regulatory compliance doesn't necessarily stifle growth but serves to build trust and stability in the market.
As the SEC continues its efforts to regulate the crypto sector, investors and platforms alike are advised to exercise due diligence. With penalties for non-compliance reaching significant financial and legal consequences, the stakes for operating outside the law in the Philippines have never been higher.