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Atty. Rafael Padilla, author of “Crypto and the Law” and co-founder of BlockDevs Asia, emphasized that abrupt blocking of crypto exchanges could leave Filipino traders locked out of their accounts without prior notice, which would cause significant financial disruption.
At the time this article is written, the mobile apps of the crypto exchanges are still available.
Sudden SEC-Backed Exchange Blocks Disrupt Filipino Traders
In a recent webcast with Arlone Paul Abello, also known as Coach Miranda Miner of Global Miranda Miner Group, Atty. Padilla raised legal and ethical concerns regarding the sudden blocking of cryptocurrency exchange websites flagged by the Commission.
“For policy reasons, I’m not sure that is appropriate because look, SEC [is] saying “investor protection”. But look who’s locked out now from their account because of this sudden blocking of these websites. And now the SC is going to say, “Hey, but you can still access that via VPN.” Oh, I thought they discourage using VPN, virtual private networks. But as you can see and not everyone I’m sorry, but in the Philippines I don’t think everyone has the necessary digital literacy or acumen to deal [or] use VPN. So, they’re really struggling to access their funds now because of this sudden blocking.”
Atty. Rafael Padilla
Citing the agency’s previous three-month grace period when it moved to block Binance in 2023, Padilla questioned why a similar or longer period was not granted this time, given the larger number of affected platforms.
“I really think we need to voice. I really think and feel we really need to voice out our objection against this policy approach of the SEC. Note that the allegation, the statement that these exchanges are committing violation of Philippine Securities Law, it’s a mere allegation. We haven’t seen yet, we have no information of the extent of the investigation that the SEC has conducted.”
Atty. Rafael Padilla
In response to Abello’s question on whether traders could approach the Commission over losses caused by the sudden blocking of websites, Atty. Padilla advised affected users to first report their cases to the SEC to stress the impact. If the matter remains unresolved, he said they may consider legal action, including seeking injunctions or temporary restraining orders.
Accordingly, he noted that the SEC’s move to block access to crypto platforms persists largely because no one has pursued legal remedies to challenge it.
While affected users can still access the sites through VPNs, he noted that app stores such as Google Play and Apple’s App Store have so far refused the SEC’s requests, dating back to early 2024, to remove Binance and similar apps. He explained that without a court order, these platforms are not legally bound to comply with the SEC or NTC’s requests, and refusing to do so does not constitute a violation of Philippine securities laws.
Moreover, he questioned the legality of the move, noting that blocking sites without formal cease-and-desist orders or court approval may violate provisions of the Securities Regulation Code, particularly on the confidentiality of ongoing investigations.
- He emphasized that a public advisory is different from a cease-and-desist order, which directly compels a market participant to halt activities, and is merely a notice of the SEC’s view that certain platforms may not comply with securities regulations.
“I don’t think this is the correct approach that the SEC should be doing. With all due respect to the SEC. I commend their support [and] their efforts to enforce the law. But they have to follow, including the law that they seek to enforce, and that’s the securities regulation code.”
Atty. Rafael Padilla
Nationwide ISP Blocks, SEC Crackdown on Unregistered CEXs
After the SEC issued an August 4, 2025 advisory warning the public against ten unregistered cryptocurrency exchanges, major internet service providers (ISPs) moved quickly to restrict access to the flagged platforms.
The advisory identified the exchanges, accessible and actively promoted in the Philippines, as operating without the required registration under the newly implemented Crypto Asset Service Provider (CASP) Rules. The SEC cited risks including total loss of funds, lack of legal recourse, and exposure to fraud, identity theft, money laundering, and terrorist financing.
On August 6, PLDT and Smart began blocking access to sites such as OKX and Bybit. The move was aligned with National Telecommunications Commission (NTC) guidelines, which enable ISPs to centrally manage DNS services and implement website restrictions at the request of regulatory agencies like the SEC.
By August 7, Globe Telecom had also joined the effort, blocking all ten flagged exchanges.
Although website access to the exchanges has been blocked, users can still access the platforms and funds via their mobile apps.
This article is published on BitPinas: Atty. Padilla: SEC’s Sudden Crypto Exchange Blocks Leave Filipino Users Locked Out of Funds
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