Largest Philippines crypto exchange, Coins.ph, said to face central bank regulatory action
Coins.ph, the largest cryptocurrency exchange in the Philippines, is facing potential regulatory action from the central bank for allegedly facilitating offshore gambling. The exchange holds significant market share, and a loss of its license could severely disrupt the local crypto ecosystem.
Why it matters
Regulatory crackdowns on major crypto exchanges in emerging markets highlight the ongoing tension between financial innovation and anti-money laundering compliance.
The infractions, which are said to involve serving offshore gambling firms, are serious enough for the 12-year-old company to be stripped of its license to operate, which would cause “an earthquake” in the Philippines’ crypto ecosystem, according to one of the people.
The exchange, which has over 18 million customers, has a 24-hour spot trading volume of about $50 million and controls some 75%-80% of peso-to-stablecoin liquidity in the Philippines, a key transaction in the world's fourth-largest remittance recipient.
More than 10.8 million Filipinos live outside the country , according to the Commission on Filipinos Overseas, though most use banks and money transfer services to repatriate their earnings, some $43 billion a year.
At the start of this month, Bangko Sentral ng Pilipinas (BSP) reportedly imposed restrictions on deposits to the exchange made through Coins.ph’s main wallet firm, DCPay Philippines.
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