Coins.ph, one of the Philippines' largest cryptocurrency exchanges, faces potential regulatory penalties over allegations involving offshore gambling operators. Two people familiar with the matter said Bangko Sentral ng Pilipinas (BSP) could revoke the company's operating license.
The central bank has reportedly restricted deposits through the exchange's primary wallet provider, DCPay Philippines. Meanwhile, Coins.ph denies knowingly serving offshore gambling businesses and maintains that customer funds remain safe.
The allegations place a major Philippine cryptocurrency platform under scrutiny. Coins.ph serves more than 18 million customers and handles approximately $50 million in daily spot trading volume. According to one source, losing its license could severely disrupt the country's cryptocurrency ecosystem.
Coins.ph Faces Regulatory Scrutiny Over Gambling Claims
The regulatory concerns reportedly involve transactions linked to offshore gambling companies. Sources familiar with the situation said the alleged violations could expose Coins.ph to severe penalties, including the loss of its license.
At the beginning of October, BSP reportedly imposed restrictions on deposits through DCPay Philippines, the exchange's main wallet company. Unlike routine temporary suspensions, the reported restrictions carried no specified end date.
One person familiar with the matter said regulators provided no reason for the measure. Meanwhile, the central bank had not responded to requests for comment when the original report appeared.
The developments also follow departures from the company's compliance department. Former chief compliance officer Lexi Herrera, anti-money laundering transaction monitoring head Chris Beaño, and money laundering reporting officer Irish Calagui have left the company.
These departures occurred as questions emerged about the exchange's compliance practices. Nevertheless, the available information does not establish whether the staffing changes relate directly to the reported regulatory action.
Coins.ph Denies Serving Offshore Gambling Operators
Following the report, Coins.ph rejected allegations that it knowingly provided services to offshore gaming or gambling businesses. The company maintained that it continues to meet regulatory requirements.
It also confirmed that it remains a BSP-licensed institution. Furthermore, Coins.ph assured customers that their funds remain safe and expressed confidence in restoring affected services soon.
The exchange said its operations follow standards established by the BSP, Anti-Money Laundering Council (AMLC), and other authorities. It also expressed willingness to engage with journalists about its operations.
Yet the allegations follow earlier restrictions on gambling-related financial services in the Philippines. More than a year earlier, BSP ordered supervised institutions to remove direct gambling access from electronic wallet applications.
According to people familiar with the situation, several gambling businesses subsequently moved toward Coins.ph. Another source said cryptocurrency and stablecoin services allowed those businesses to make payments to offshore partners.
Philippines Crypto Market Faces Potential Liquidity Risks
Coins.ph reportedly controls approximately 75% to 80% of Philippine peso-to-stablecoin liquidity. Consequently, regulatory action against the exchange could affect an important channel for cryptocurrency transactions.
The Philippines also ranks as the world's fourth-largest recipient of remittances. More than 10.8 million Filipinos live abroad, according to the Commission on Filipinos Overseas.
These overseas communities send approximately $43 billion home annually. Although banks and conventional money transfer providers handle most remittances, stablecoins offer another channel for moving funds.
Coins.ph has operated for roughly 12 years, initially providing cryptocurrency wallet and exchange services before expanding into broader financial products. Its ownership also changed during that period. Indonesian technology company Gojek acquired Coins.ph for $95 million in January 2019.
Gojek subsequently sold the business to Wei Zhou, a former Binance chief financial officer. The company now faces regulatory uncertainty while continuing to operate under its existing BSP license.
Conclusion
Coins.ph faces possible regulatory penalties following allegations involving offshore gambling transactions. The exchange denies knowingly serving gambling operators and says customer funds remain secure. Meanwhile, reported deposit restrictions and compliance staff departures have raised questions about its operations. Any license revocation could affect the platform's substantial share of Philippine peso-to-stablecoin liquidity.