The Philippines Securities and Exchange Commission (SEC) has ordered the National Telecommunications Commission (NTC) to block access to cryptocurrency exchanges Coinbase and Gemini. The directive targets platforms operating without the required license to offer securities or investment products within the jurisdiction.
This enforcement action effectively cuts off the local user base from two of the world’s largest exchanges. The SEC cited the Securities Regulation Code, noting that neither firm possesses the necessary secondary license to act as a Virtual Asset Service Provider (VASP). Under Philippine law, any entity soliciting investments or offering securities to the public must register specifically for that privilege.
The Regulatory Purge Continues
This move is not an isolated incident. It follows the regulator’s March directive to block Binance, establishing a clear pattern of enforcement against non-compliant offshore entities. Commissioner Kelvin Lee previously warned that the grace period for unregistered exchanges had expired. The message is binary: register or face a blackout.
The SEC stated that the ban is necessary to preventing the proliferation of investment scams and protecting the investing public from the risks associated with unregistered investment products.
While Coinbase (COIN) stock volume is driven primarily by US institutional flows, the Philippines ranks high in global crypto adoption metrics. The blockade forces local retail capital to migrate toward the 17 currently registered VASPs, such as Coins.ph and PDAX, which comply with local anti-money laundering and consumer protection statutes.
Implementation Timeline
The NTC order mandates internet service providers (ISPs) to restrict access to the domains immediately. If the Binance execution is the template, users may experience intermittent connectivity failures within 48 hours before a total blackout ensues. Traders with assets on these platforms face urgent pressure to withdraw funds or risk losing access via standard local gateways.
