Philippine cryptocurrency exchange Coins.ph is facing a regulatory penalty from the Bangko Sentral ng Pilipinas (BSP) for allegedly processing business transactions for restricted offshore gambling enterprises. According to sources familiar with the matter, these violations could result in the revocation of Coins.ph's operating license if deemed serious. Earlier this month, the BSP reportedly restricted deposits to the exchange through its wallet operator, DCPay Philippines, without disclosing specific reasons. This action follows previous BSP requirements for regulated institutions to cut off e-wallet apps' access to gambling websites. Sources indicate that some gambling enterprises subsequently turned to Coins.ph to pay offshore partners using cryptocurrencies and stablecoins.
The potential loss of an operating license represents a significant escalation in regulatory enforcement against crypto exchanges facilitating prohibited activities. By targeting Coins.ph for processing payments linked to offshore gambling, the Bangko Sentral ng Pilipinas signals a stricter interpretation of compliance obligations regarding transaction monitoring and counterparty risk.
This development highlights the operational risks faced by digital asset platforms when traditional financial channels are closed. As regulated entities severed ties with gambling sites, the migration of these flows to crypto rails created new vulnerabilities. The BSP’s actions suggest that authorities are actively tracking these alternative payment routes and are prepared to impose severe penalties on intermediaries that fail to prevent such usage.
