Philippines SEC Warns Crypto Investors: dYdX and Six Other Platforms Are Operating Without a License

The Commission on Philippine Securities and Exchange doesn't often make public announcements regarding the violation of any laws or rules but when they do issue a warning it is important to take note. This month the regulator has identified seven crypto trading websites as being illegal to sell or solicit securities from investors within the Philippines; these companies include the well reputed dYdX, a decentralized derivatives trading exchange. The other companies that received this warning are Fairdesk, Zoomex, CoinW, Binstep, Bitcoin Cashier, and Coins Work, all of these are operating without the proper licensing from the SEC to operate in the Philippines. Just the lack of a proper license is in fact a legal basis for the SEC to shut down a company.

This should not be the first time we have experienced an issue with regards to getting involved with illegal promotions/advertisements distributed by rogue crypto-valued trading platforms. The SEC has issued multiple warnings over the years regarding unlicensed platforms and the list keeps getting longer. However, adding a well-known publicly traded company like dYdX to this list sends a message from the SEC that they are looking beyond underground businesses; they are also concerned with major industry players in the same way they are with small-time operators. In August 2025, the SEC issued an advisory naming 10 exchanges, including OKX, Bybit, KuCoin, and Kraken, for offering crypto services without registration — and later blocked Coinbase and Gemini on December 24, 2025, as part of the same enforcement push. You can read the full SEC advisory against dYdX for primary confirmation.

What "Unauthorized" Actually Means Here

In the Philippines, under securities regulation law, anyone that is involved in the buying or selling of securities must register with the SEC (Securities and Exchange Commission). Any cryptocurrency exchange or platform that offers any kind of offerings which are classified as a security must also register with the SEC as well as be governed by the rules and laws that pertain to them. This includes things like future contracts, derivatives, or any other form of investment contracts that may be offered by the exchange or platform.

Typically offshore cryptocurrency platforms do not register to do business within the Philippines since they do not have a physical office or presence within the country. Therefore these offshore exchanges and platforms will offer their products globally and accept Filipinos as users, however, they don't see how this relates to them. The SEC sees it differently. Under the CASP framework, all platforms must be registered corporations with the SEC, maintain a minimum paid-up capital of PHP 100 million, and keep a physical office in the Philippines — regardless of where they are headquartered. Read the full CASP rules for regulatory confirmation.

When the SEC has warned an investor about a platform, it is basically telling investors; if you invest your money into that platform, there is no recovery process for you if something goes wrong with the exchange or platform you are using. There is no regulatory body to handle any complaints against them, there is no compensation process at all, and there will be no investigation if there is a problem; This means investors are stuck.

Investors are either going to be provided the opportunity to recoup losses sustained from the use of these types of platforms and/or exchanges. However, regardless of whether or not these types of platforms or exchanges are scamming their investors, Filipino investors who lose their money will not have any resources available to them.

dYdX Specifically

Since 2017, dYdX has built a strong image as a non-custodial crypto derivatives exchange and continues to operate on-chain, meaning the user will retain custody of their assets via smart contracts without handing them over to a third party (i.e., a centralized custodian). This architecture contributes to the platform's appeal to many crypto users.

Regardless of whether the platform is decentralized, the SEC believes under the laws of the Philippines, individuals trading derivative-type products are required to obtain regulatory approval regardless of the operating technology utilized. Anyone acting as a promoter, recruiter, influencer, endorser, or enabler for dYdX in the Philippines faces criminal liability — with a maximum fine of ₱5,000,000 and imprisonment of up to 21 years under Sections 28 and 73 of the Securities Regulation Code.

Who's Using These Platforms?

The short answer is likely "many." The Philippines has witnessed an ongoing growth in crypto use, as a result of numerous factors such as remittances, gaming (specifically play-to-earn), as well as a renewed interest in alternative assets, given the rise in inflation. According to multiple sources, the Philippines ranks close to the very top of globally based usage surveys. The Philippines ranked 9th in the Chainalysis 2025 Global Crypto Adoption Index, continuing a downward trend after peaking at 2nd place in 2022 — still placing it firmly among the world's most active grassroots crypto markets. See the Chainalysis 2025 Index for the full data.

This user base is precisely what the SEC is attempting to connect with using these types of advisories. There are many Filipino crypto investors who are very savvy and know exactly the risks associated with this type of trading. However, there are also many who do not understand what it means to trade on an unregistered foreign exchange platform, or what would occur if the exchange froze withdrawals, was hacked, or simply went out of business.

Due to the number of incidents the SEC has already witnessed in regard to this type of situation, the agency has continued to provide repeated warnings.

Enforcement Is the Hard Part

Identifying these platforms is simple. Preventing people in the Philippines from being able to log in to them is complicated. Most of these platforms can be accessed through a web browser. Many use virtual private networks (VPNs) to go around the geographic location restrictions that some of those sites impose. In order to completely block all of those sites at the internet service provider level would require extensive coordination with those ISP's. It would be technically difficult and politically fraught.

The SEC has already acknowledged this limitation; its prior public advisories largely serve as public education rather than actual enforcement barriers. When the SEC issues public advisories on these platforms, the SEC is essentially saying "we've told you this is not allowed. Proceed with this information". Following SEC advisories, major ISPs including PLDT and Smart implemented access blocks, with users attempting to reach flagged platforms frequently encountering regulatory violation notices.

Whether or not that will be enough is an open question (probably not for many), but it does at least create some level of accountability. For example, if a person loses money after the SEC has issued a public advisory on one of these platforms, they would have a more difficult time proving they weren't warned.

What Investors Should Do

Always ensure you have done your due diligence on the SEC's Public Database of Registered Companies before depositing any funds onto a company or platform that isn't listed in the registry. If the company does not show up in this registry, consider carefully the value of the type of protections you are giving up by using a platform that is creating a decentralized market. Because of the decentralization of many popular exchanges such as dYdX, there are no customer service representatives available to assist you or provide resolution in the event of an issue; there is no regulatory body that you can complain to; and there is no insurance in place in the event of an issue. Under the CASP rules, all registered platforms are required to segregate customer funds from company funds — a key protection that unlicensed platforms do not offer. Check the SEC's CASP framework to verify which platforms are compliant before you invest.

While many people may be willing to accept these trade-offs when investing, these decisions are made deliberately, not accidentally.