Coins.ph, one of the Philippines’ leading cryptocurrency exchanges, is confronting potential regulatory penalties due to accusations regarding offshore gambling operators. Two individuals with knowledge of the situation indicated that Bangko Sentral ng Pilipinas (BSP) might strip the company of its operating license.
According to reports, the central bank has limited deposits via DCPay Philippines, which serves as the exchange’s primary wallet provider. In response, Coins.ph has denied knowingly servicing offshore gambling enterprises and asserted that user funds are secure.
This scrutiny places a significant Philippine crypto platform under the microscope. Serving a customer base exceeding 18 million and processing roughly $50 million in daily spot trading volume, the platform could cause major disruptions to the national cryptocurrency ecosystem if its license is revoked, an insider noted.
Coins.ph Faces Regulatory Scrutiny Over Gambling Claims
The regulatory worries center on transactions purportedly tied to offshore gambling firms. Sources close to the issue stated that the alleged infractions could subject Coins.ph to harsh penalties, up to and including license termination.
Reports indicate that BSP placed restrictions on deposits through DCPay Philippines at the start of October. Unlike typical temporary freezes, these reported limitations lacked any defined end date.
An individual familiar with the proceedings stated that regulators offered no justification for the action. At the time of the initial report, the central bank had not replied to requests for comment.
These developments coincide with exits within the firm’s compliance division. Lexi Herrera, the former chief compliance officer; Chris Beaño, head of anti-money laundering transaction monitoring; and Irish Calagui, the money laundering reporting officer, have all departed.
While these exits transpired amid rising inquiries into the platform’s compliance procedures, available details do not definitively link the personnel changes to the reported regulatory measures.
Coins.ph Denies Serving Offshore Gambling Operators
In the wake of the report, Coins.ph pushed back against accusations that it intentionally offered services to offshore gaming or gambling entities, asserting that it stays compliant with regulatory standards.
The company also verified its status as a BSP-licensed institution, reassured users that their assets are secure, and voiced optimism about bringing impacted services back online shortly.
The exchange emphasized that its activities adhere to guidelines set by the BSP, the Anti-Money Laundering Council (AMLC), and additional regulatory bodies, while also indicating a readiness to discuss its operations with media representatives.
Even so, the claims arrive on the heels of previous limits placed on gambling-related financial offerings in the Philippines. Over a year prior, the BSP mandated that supervised entities strip direct gambling access from e-wallet apps.
According to insiders, several gambling operations subsequently gravitated toward Coins.ph. Another source noted that crypto and stablecoin features enabled these entities to disburse payments to offshore partners.
Read More: Coins.ph Expands Crypto Payments Across the Philippines with Bitcoin and Ethereum Support via National QR Code System
Philippines Crypto Market Faces Potential Liquidity Risks
Estimates suggest that Coins.ph commands roughly 75% to 80% of the Philippine peso-to-stablecoin liquidity market. As a result, any enforcement action against the firm could disrupt a vital conduit for cryptocurrency activity.
Additionally, the Philippines stands as the fourth-largest recipient of remittances globally, supported by a diaspora of over 10.8 million Filipinos living overseas, figures from the Commission on Filipinos Overseas show.
These overseas populations remit close to $43 billion every year. Although traditional banks and money transfer services process the bulk of these remittances, stablecoins provide an alternative mechanism for transferring capital.
Having operated for roughly 12 years, Coins.ph initially launched as a crypto wallet and exchange before branching into broader financial services. Its ownership has shifted during this span; Indonesian tech firm Gojek bought Coins.ph for $95 million in January 2019.
Gojek later divested the company to Wei Zhou, a former Binance chief financial officer. The platform currently navigates regulatory uncertainty while maintaining operations under its active BSP license.
Conclusion
Coins.ph is confronting potential regulatory sanctions following accusations related to offshore gambling transactions. Although the exchange refutes intentionally servicing gambling entities and stresses that client funds are secure, reported deposit caps and compliance staff departures have brought its operations into question. Any potential license revocation would impact the platform’s dominant share of Philippine peso-to-stablecoin liquidity.
