Serving more than 18 million users, the platform reportedly processed financial deals linked to banned online gambling and betting firms.
The Philippines’ top crypto exchange, Coins.ph, confronts regulatory penalties from central bank officials, according to two sources familiar with the matter.
These violations involving illicit betting firms carry severe risks, potentially forcing central bank authorities to revoke the 12-year-old firm’s operating license and spark an “earthquake” across the Philippine crypto market, one source noted.
Catering to over 18 million users, the exchange generates nearly $50 million in daily spot volume while commanding roughly 75% to 80% of Philippine peso-to-stablecoin liquidity, a vital bridge for the world’s fourth-biggest remittance hub.
Over 10.8 million Filipinos reside abroad, based on Commission on Filipinos Overseas figures, with the majority utilizing banks and money transfer operators to send back their earnings, totaling nearly $43 billion annually.
Earlier this month, the Bangko Sentral ng Pilipinas (BSP) reportedly capped deposit flows to the platform through DCPay Philippines, Coins.ph’s primary wallet service.
These limitations come after several top compliance executives stepped down, including chief compliance officer Lexi Herrera, anti-money laundering monitoring chief Chris Beaño, and reporting officer Irish Calagui.
Coins.ph and Central Bank Remain Silent on Regulatory Move
Neither Coins.ph nor the Philippine central bank answered outreach efforts seeking comment prior to publication time.
Roughly a year ago, the central bank restricted digital wallet apps from facilitating gambling, requiring regulated institutions to eliminate in-app access to betting platforms.
Consequently, multiple betting operations shifted to Coins.ph, according to the sources. This transition enabled these companies to utilize crypto and stablecoins for settling payments with foreign partners, a third source knowledgeable about central bank oversight noted.
Unlike typical temporary suspensions for technical flaws like throughput or latency issues, central bank officials set no expiration date on Coins.ph’s recent limitation, omitting any official explanation for the move, a source stated.
Launching as one of the pioneer crypto exchanges and wallets in the Philippines, Coins.ph subsequently expanded its focus toward broader financial services.
Indonesian tech giant Gojek acquired Coins.ph for $95 million in January 2019, before former Binance chief financial officer Wei Zhou subsequently purchased the platform.
