Why Philippines Blocked Coinbase, Gemini and 50+ Crypto Platforms?

Philippine ISPs Blocked Unlicensed Crypto Platforms Coinbase, Gemini

Key Highlights:

• The NTC ordered Philippine ISPs to block Coinbase and Gemini.

• Approximately 50 unlicensed crypto Platforms were attacked, according to BSP results.

• Crackdown follows Binance ban and warnings of OKX, Bybit, and KuCoin.

Philippine regulators have been tightening control over the platforms by banning large international exchanges such as Coinbase and Gemini and indicating a stringent move to a licensed and regulated asset business.

Philippine ISPs blocked huge unlicensed crypto platforms

The internet service providers (ISPs) in the Philippines have begun restricting access to international cryptocurrency exchanges Coinbase and Gemini, in response to a regulatory order issued by the National Telecommunications Commission (NTC).

Various users complained that they could not access the platforms, and independent verifications revealed that the services were offline in a number of local ISPs. The action is indicative of a larger governmental initiative to achieve adherence to local crypto laws.

Source: Wu Blockchain X

NTC Targets 50+ unlicensed trading platforms

Local reports state that the NTC ordered the ISPs to block about 50 online trading sites that were reported to be operating without permission. The platforms were registered depending on the designation findings by the Bangko Sentral ng Pilipinas (BSP), the central bank of the country.

Although the BSP has not publicly published the list of platforms impacted, the regulators stressed that the licensing status has become the most important requirement for companies that want to operate in the Philippines.

Coinbase and Gemini Add to the Binance Block List

The shutdown of Coinbase and Gemini is another name on a list of enforcement measures against unlicensed exchanges. Philippine regulators in December 2023 granted Binance a 90-day period to abide by local laws.

Following Binance not non-compliance with the demands, the NTC instructed the ISPs to block the platform in March 2024, and then Apple and Google to take down the Binance platform in their respective app stores. The authorities subsequently made it clear that they were not in a position to formally assist those users who wanted to claim funds that they had invested in the platform that had been banned.

SEC Flags Additional Unlicensed Crypto Exchanges

Philippines Securities and Exchange Commission (SEC) has been carrying on with the monitoring. In the latest announcement, the regulator identified 10 unlicensed exchanges, which include OKX, Bybit, and KuCoin.

This is highlighted by these warnings as the government is paying growing attention to investor protection and regulatory responsibility as more people in the country adopt cryptocurrency.

Controlled Exchanges widen Cryptocurrency

Even after the crackdown, there is an expansion of licensed and compliant companies. In November, regulated exchange PDAX collaborated with payroll company Toku to facilitate stablecoin remuneration of remote employees.

In the meantime, digital bank GoTyme introduced cryptocurrency services in December in a collaboration with US fintech company Alpaca, enabling users to purchase and hold select crypto assets in a regulated banking app.

Conclusion

The strong position of the Philippines regarding regulation makes it evident that the country is sending a message to the world that only licensed platforms will be allowed to operate, and this strategy is geared towards the protection of users, enhancement of market legitimacy, and the creation of a safer digital asset market.

Disclosure: This is financial advice. Do your own research before investing. CoinGabbar has no liability to any financial losses. Cryptocurrencies are extremely unstable, and you can lose all your money.