Philippines Crypto Giant Coins.ph Faces Potential Central Bank Sanctions
Coins.ph, the Philippines’ largest cryptocurrency exchange, reportedly faces regulatory action from the country’s central bank over alleged transactions involving restricted offshore gambling businesses. The potential enforcement action raises questions about compliance controls at a platform serving more than 18 million customers.
Two people familiar with the situation said regulators at the Bangko Sentral ng Pilipinas (BSP) were considering punitive measures against the exchange. One source indicated that the alleged violations could be serious enough to threaten the company’s operating license. However, the allegations have not been independently established, and the regulator has not publicly confirmed the reported action.
Coins.ph plays a significant role in the Philippines’ cryptocurrency market, particularly in transactions between the Philippine peso and stablecoins.
Regulatory Restrictions Raise Stakes
The reported scrutiny follows restrictions that the BSP allegedly imposed earlier in October on deposits processed through DCPay Philippines, the wallet business associated with Coins.ph.
According to people familiar with the matter, the central bank did not provide a specific reason for the restrictions. Unlike temporary suspensions imposed for operational problems, the measures reportedly had no defined time limit.
The development comes amid broader efforts by Philippine authorities to strengthen oversight of financial services connected to online gambling.
A little over a year ago, the BSP directed supervised financial institutions to cut in-app access to gambling websites. Following that move, some gambling operators reportedly turned to Coins.ph for financial services.
Sources familiar with the situation said these businesses could use cryptocurrency and stablecoins to facilitate payments to offshore partners. The reported transactions have placed the exchange’s compliance practices under increased scrutiny.
Compliance Departures Add Pressure
The regulatory concerns also follow the departure of several senior compliance personnel from Coins.ph this year. Those who reportedly left include Chief Compliance Officer Lexi Herrera, anti-money-laundering transaction monitoring head Chris Beaño, and money-laundering reporting officer Irish Calagui.
These departures raise additional questions about the exchange’s compliance operations as regulators examine its activities. However, the reported exits do not establish that the employees’ departures resulted from any specific regulatory findings.
Neither Coins.ph nor the BSP responded to requests for comment before publication of the initial report.
Any loss of its operating license could significantly affect the Philippine cryptocurrency ecosystem. The exchange reportedly handles around $50 million in daily spot trading volume and controls an estimated 75% to 80% of the country’s peso-to-stablecoin liquidity.
The situation remains developing, with the regulator’s next steps and the exchange’s response still unclear.
