‘Unfair and Unnecessary’—Crypto Community Blasts Infrawatch Over OKX and Bitget Ban Request

The Filipino crypto community recently shared their perspectives on the recent request of the public policy group Infrawatch PH to the Securities and Exchange Commission (SEC) to ban the unregistered cryptocurrency exchanges Bitget and OKX for operating illegally in the Philippines.

Context:

• Check here for a list of licensed cryptocurrency exchanges in the Philippines.
• The BSP has paused all applications for new licensed virtual asset services providers, although it must be emphasized that application is not the only path to licensing.
• A House Resolution was recently filed by Albay Representative Joey Salceda to study taxing these foreign exchanges instead, as part of the expanded VAT law on digital services.

Infrawatch’s Argument:

• Terry Ridon, Infrawatch’s convenor, said these exchanges conducted aggressive marketing, including giveaways and events targeting university students.
• Infrawatch highlighted Bitget’s unauthorized presence, enabling Filipinos to purchase tokens via platforms like GCash and local bank transfers.
• Meanwhile, Ridon said OKX offered crypto purchases through BSP-regulated banks and e-wallets like GCash, PayMaya, and UnionBank without a VASP license.
  • Infrawatch raised concerns about peer-to-peer (P2P) crypto transactions, which they claim violate financial laws and facilitate illegal activities.

Key Quote:

“Similar to Binance, Filipino Bitget and OKX users are exposed to several other financial risks every day and are left without recourse. Binance exploits the Philippine market without accountability… We are thus calling on the SEC to implement the same resolve to Bitget and OKX, as it also poses a threat to the security of the funds of investing Filipinos. Therefore, we are again bringing this matter before this Honorable Commission for its immediate and appropriate action.”

Infrawatch PH

Accordingly, Infrawatch called on the SEC to investigate Bitget and OKX, issue cease-and-desist orders, impose penalties, and ensure the same strict enforcement seen in the Binance case to protect Filipino investors.

Community Reaction:

In a Facebook post by BitPinas announcing the news, the Filipino crypto community responded with a range of reactions to Infrawatch’s latest appeal to the Commission.

The reactions are largely negative, with many commenters criticizing the Philippines’ crypto regulations and expressing dissatisfaction with Infrawatch, the government, and local exchanges. Some accused Infrawatch of trying to monopolize the market for local platforms, while others believe that the government’s actions are hindering financial growth for Filipinos.

• It should be noted that in the absence of a license, there was a House Resolution filed by Albay Representative Joey Salceda to tax these foreign exchanges instead, as part of the expanded VAT law on digital services.

What About SeedIn and Blend?

In one comment, the commenter expressed frustration, stating they haven’t received a refund from SEC-registered platforms like SeedIn and Blend, questioning the SEC’s effectiveness. [It is important to note that it was Infrawatch, not the SEC, that is calling for the ban on the exchanges.]

• They dismissed Infrawatch’s statement that Filipinos are being “saved” from unregistered exchanges.

Main Points of the Comments:

• Frustration over high fees and poor service.
• The commenters are criticizing the government for allowing gambling but targeting crypto exchanges.
• The community also calls for a more balanced approach, like licensing exchanges rather than banning them.
• Some view the ban as an effort to protect the interests of local exchanges.
• Complaints about the inefficacy of the SEC in truly protecting investors.

Regulated and Unregulated Gambling Platforms Criticized

Moreover, web3 content creator Kookoo Crypto TV, also criticized the SEC in a Facebook post for wanting to ban almost everything related to crypto while not regulating casino gaming and gambling platforms, which are prominently displayed in large billboards across the country. 

• It’s important to note that PAGCOR regulates gaming activities in the Philippines and issues licenses for them. 

Infrawatch Ttargeted with One-Star Reviews Even in Google Maps:

In addition to social media complaints, Filipino crypto enthusiasts also voiced their frustrations with Infrawatch by leaving one-star reviews on Google Maps.

The oldest review, posted a year ago, coincided with Infrawatch’s push for the SEC to ban Binance. The most recent reviews, appearing just hours ago, are in response to Infrawatch’s latest appeal against OKX and Bitget.

The reviewers expressed frustration on the push to ban major crypto platforms like Binance and OKX, lamenting the negative impact of regulations on ordinary Filipinos, and pointing out the poor quality of local platforms compared to international ones. 

They also emphasized that the country seems to favor gambling sites, allowing them to operate freely while imposing stricter regulations on crypto platforms.

Worth reading: Trading platform eToro will also cease operations in the Philippines by February 7, 2025, following global regulatory crackdowns on unlicensed platforms.

This article is published on BitPinas: ‘Unfair and Unnecessary’—Crypto Community Blasts Infrawatch Over OKX and Bitget Ban Request

What else is happening in Crypto Philippines and beyond?