Philippines Central Bank Targets Coins.ph Over Gaming Links

Coins.ph, the largest cryptocurrency exchange in the Philippines, is facing punitive action from financial regulators at the country’s central bank, according to sources familiar with the matter. The 12-year-old exchange, which boasts over 18 million customers, is said to have handled business transactions involving restricted offshore gaming and gambling companies.

According to CoinDesk sources, the alleged infractions are serious enough to potentially see the company stripped of its operating license. Such an outcome would cause significant disruption in the Philippines' crypto ecosystem. Earlier this month, the central bank of the Philippines, Bangko Sentral ng Pilipinas (BSP), reportedly imposed restrictions on deposits made through the exchange's main wallet firm, DCPay Philippines.

Regulatory Crackdown and Departures

The central bank restrictions arrive following the departure of several high-profile compliance staff members this year. Those who left include chief compliance officer Lexi Herrera, head of anti-money laundering transaction monitoring Chris Beaño, and money laundering reporting officer Irish Calagui.

A little over a year ago, the central bank clamped down on the use of e-wallet applications for gambling, demanding supervised institutions cut in-app access to gambling sites. Sources state that several gambling entities subsequently migrated to Coins.ph to gain access to crypto and stablecoins for paying offshore partners.

Market Impact

Coins.ph commands a 24-hour spot trading volume of approximately $50 million and controls an estimated 75% to 80% of peso-to-stablecoin liquidity in the Philippines. The country represents the world's fourth-largest remittance recipient, where overseas workers repatriate billions annually.

Neither Coins.ph nor the central bank responded to requests for comment by publication time. The exchange was originally acquired by Indonesian technology company Gojek in January 2019 for $95 million before being sold to Wei Zhou, former chief financial officer at Binance.

Key facts

• Coins.ph handles over 18 million customers and controls 75%-80% of peso-to-stablecoin liquidity in the Philippines.
• The central bank reportedly restricted deposits through main wallet firm DCPay Philippines at the start of the month.
• Several key compliance staff, including CCO Lexi Herrera, departed the exchange this year.