Coins.ph, the Philippines' largest cryptocurrency exchange, is reportedly facing potential enforcement action from the country's central bank over alleged transactions involving restricted offshore gambling businesses. The possible action raises questions about compliance controls at a platform serving more than 18 million customers.

Two people familiar with the situation said regulators at the Bangko Sentral ng Pilipinas (BSP) have been considering punitive measures against the exchange. One of the sources indicated that the alleged violations could be serious enough to threaten the company's operating license. The BSP is the authority that licenses supervises cryptocurrency exchanges in the Philippines, where trading platforms operate as registered virtual asset service providers, and its enforcement toolkit spans measures from monetary penalties to suspension or revocation of a registration. The allegations have not been independently established, however, and the regulator has not publicly confirmed any reported action.

Coins.ph occupies a significant position in the Philippine cryptocurrency market, particularly in transactions between the Philippine peso and stablecoins. Peso-to-stablecoin pairs serve as the primary on- and off-ramp between the local currency and dollar-pegged digital assets, placing the platform at the center of how funds move into and out of the domestic crypto sector.

Deposit Restrictions Raise the Stakes

The reported scrutiny follows restrictions that the BSP allegedly imposed earlier in October on deposits processed through DCPay Philippines, the wallet business associated with Coins.ph. According to people familiar with the matter, the central bank did not provide a specific reason for the restrictions, which, unlike temporary suspensions imposed for operational problems, reportedly had no defined time limit.

The development comes amid broader efforts by Philippine authorities to strengthen oversight of financial services connected to online gambling. A little over a year ago, the BSP directed supervised financial institutions to cut in-app access to gambling websites — part of a wider government campaign against offshore gambling that included an order for Philippine offshore gaming operators, known as POGOs, to shut down by the end of 2024. Following that directive, some gambling operators reportedly turned to Coins.ph for financial services, and sources familiar with the situation said these businesses could use cryptocurrency and stablecoins to facilitate payments to offshore partners. The reported transactions have placed the exchange's compliance practices under increased scrutiny.

Senior Compliance Departures Add Pressure

The regulatory concerns also follow the exit of several senior compliance personnel from Coins.ph this year, including Chief Compliance Officer Lexi Herrera, anti-money-laundering transaction monitoring head Chris Beaño, and money-laundering reporting officer Irish Calagui. Regulated institutions in the Philippines are expected to maintain designated money-laundering reporting and transaction-monitoring functions, so the simultaneous loss of all three roles compounds the questions about the exchange's operations as regulators examine its activities, although they do not establish that the employees left as a result of any specific regulatory findings.

Neither Coins.ph nor the BSP responded to requests for comment before publication of the initial report by CryptoMeter io.

The potential consequences for the domestic crypto sector are substantial. The exchange reportedly handles around $50 million in daily spot trading volume and controls an estimated 75% to 80% of the country's peso-to-stablecoin liquidity, meaning any loss of its operating license could significantly affect the Philippine cryptocurrency ecosystem.

The situation remains developing, and the regulator's next steps and the exchange's response are still unclear. Key developments to watch include whether the BSP publicly confirms or discloses any enforcement measure, whether the DCPay deposit restrictions are lifted or extended, whether Coins.ph fills its vacant senior compliance roles, and whether the exchange issues a formal response.