The Philippines Securities and Exchange Commission (SEC) is facing pressure to crack down on cryptocurrency exchanges Bitget and OKX following a formal complaint by Infrawatch PH. The watchdog group claims that both platforms have violated the country’s regulations on Virtual Asset Service Providers (VASPs) by conducting promotional activities under the guise of educational blockchain initiatives. Infrawatch warns that these actions put Filipino investors at significant risk.

Infrawatch PH Raises Red Flags on Promotional Events

Terry Ridon, the convenor of Infrawatch PH, has expressed concern over Bitget and OKX’s participation in local conferences and college events, stating that the companies are promoting their platforms while avoiding proper regulatory oversight. According to Ridon, these events, disguised as educational initiatives, are merely marketing strategies to push for broader adoption of the exchanges among Filipino students.

“These crypto platforms are not registered to operate in the country, which raises serious concerns about the safety and legality of their operations,” said Ridon.

One of the major points of contention with Bitget involves its integration with popular payment platforms like GCash and local bank transfers. According to Infrawatch PH, Bitget enables Filipinos to purchase its native token, BGB, using these services, which suggests the exchange is operating within the country’s financial system without proper authorization.

“The use of GCash for crypto transactions on an unregistered platform exposes millions of Filipinos to high risks without the protection of our financial regulations,” Infrawatch said in a statement.

Aggressive Marketing and Campus Promotions Raise Alarms

Both Bitget and OKX have allegedly launched aggressive marketing campaigns in the Philippines. These include cryptocurrency giveaways, prize money, and sponsorships of university events. Infrawatch argues that while these initiatives may appear to be educational, their underlying aim is to promote the platforms to a younger audience and drive adoption among students.

“OKX’s presence at universities would be understandable if it were a licensed platform. But without the proper registration, it’s troubling,” said Ridon.

OKX, which offers cryptocurrency purchase options through regulated local banks and e-wallet services like GCash, PayMaya, and UnionBank, is also under fire for operating without a VASP license. Infrawatch has highlighted the risks associated with using these services on an unregulated platform, urging the SEC to take swift action.

Infrawatch Demands Strict SEC Action

Infrawatch PH is calling on the SEC to act quickly, urging the regulatory body to issue stop-and-desist orders against Bitget and OKX. The group emphasized the need for strong enforcement, drawing parallels to the government’s handling of the Binance case earlier this year.

“We need the SEC to continue its tough stance on unregistered crypto platforms to protect Filipino investors from fraud and financial loss,” Infrawatch said.

The watchdog group is hopeful that the SEC will step in and hold these exchanges accountable for their regulatory violations, ensuring that crypto investors in the Philippines are safeguarded under the law.