IT expert calls for crackdown on unlicensed crypto platforms
In a statement on Wednesday, European Chamber of Commerce of the Philippines (ECCP) ICT Committee co-chair Reyner Villaseñor claimed that unlicensed cryptocurrency exchanges 'operating without regulatory oversight' have become the financial tool of organized crime syndicates operating within and beyond the country's borders.
'Criminal syndicates are exploiting regulatory gaps to carry out diverse illegal activities, using unlicensed and unregulated cryptocurrency platforms as their tools,' Villaseñor said.
The IT expert said the unlicensed cryptocurrency platforms enabling criminal syndicates to move millions in illicit funds 'with little to no trace.'
Citing data from the Global Anti-Scam Alliance, Villaseñor said Filipinos have lost an estimated P460 billion to online crime in 2024—equivalent to 1.9% of the country's gross domestic product (GDP).
'These numbers paint a grim picture: the Philippines is now in the midst of a digitally enabled crime epidemic - one that calls for immediate public vigilance, private sector safeguards, and proactive regulatory intervention and law enforcement action,' he said.
Without properly audited KYC or Know-Your-Customer and anti-money laundering controls—standards mandated on licensed platforms—these rogue exchanges offer near-total anonymity, according to the IT expert.
Villaseñor said criminals are exploiting blind spots to launder ransom payments, conceal profits from human trafficking, and move massive sums without triggering regulatory red flags.
With this, the IT expert called for an urgent, coordinated crackdown from the Securities and Exchange Commission (SEC), the Department of Information and Communications Technology (DICT), the Bangko Sentral ng Pilipinas (BSP), and other relevant agencies. —RF, GMA Integrated News
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