The Philippines’ largest crypto exchange, Coins.ph, reportedly faces the risk of losing its license after restrictions were imposed on deposits through DCPay and allegations emerged that it serves offshore gambling companies.
According to a report by CoinDesk, which cited two people familiar with the matter, the Central Bank of the Philippines (BSP) is preparing to take enforcement action against Coins.ph. One source said the alleged violations were serious enough to potentially result in the revocation of the exchange’s operating license.
In early October, restrictions were reportedly imposed on deposits made through DCPay Philippines, the exchange’s main wallet company. According to one source, no end date was specified for the restriction, and no reason was given.
18 million customers and a large share of the stablecoin market
Coins.ph has more than 18 million customers; the report puts the exchange’s 24-hour spot trading volume at about $50 million. The platform is said to control 75-80 percent of the liquidity between the peso and stablecoins in the Philippines. This scale makes possible license enforcement action significant for the local crypto market, not just for one company.
Senior departures from the company’s compliance team also took place before the deposit restrictions. Those who left include compliance director Lexi Herrera, Chris Beaño, head of the transaction monitoring unit focused on anti-money laundering, and Irish Calagui, the anti-money laundering reporting officer.
What are the allegations involving gambling companies?
A little over a year ago, the Central Bank of the Philippines instructed the institutions it supervised to block access to gambling sites from within e-wallet apps. According to people interviewed in the report, some gambling companies turned to Coins.ph afterward. A third person familiar with regulatory processes said these companies could use cryptocurrency and stablecoins to pay business partners overseas.
Coins.ph and the central bank had not responded to requests for comment at the time the report was published. No decision announcing the revocation of the license has been made; the possibility is based on the assessment of sources cited in the report.
Not investment advice.