An information and communications technology proponent on Tuesday urged Philippine regulators to intensify a crackdown on unlicensed cryptocurrency platforms, saying they are increasingly linked to serious criminal activities.
Reyner Villaseñor, co-chair of the Information and Communication Technology (ICT) Committee of the European Chamber of Commerce of the Philippines (ECCP), warned that unlicensed cryptocurrency platforms fuel kidnappings, human trafficking, large-scale scams, and even drug and illegal gambling operations.
He added in his press statement that unlicensed cryptocurrency exchanges, operating without regulatory oversight, have become the financial backbone 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.
These shadow platforms, he said, are enabling criminals to move millions in illicit funds with little to no trace, and the consequences are now surfacing in deeply alarming ways.
Citing data from the Global Anti-Scam Alliance, Villaseñor noted that Filipinos lost an estimated P460 billion to online crimes in 2024, equivalent to 1.9 percent of the country’s gross domestic product (GDP). This figure, however, represents only a portion of a much broader ecosystem of digitally enabled crimes that extend beyond purely online activity, he added.
In 2024, the Bangko Sentral ng Pilipinas (BSP) likewise recorded P5.82 billion in losses in cybercrime incidents among supervised financial institutions, marking a staggering 212 percent increase year-on-year.
“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,” Villaseñor said.
He called for an urgent, coordinated crackdown by the Securities and Exchange Commission (SEC), the Department of Information and Communications Technology (DICT), the BSP and other relevant agencies.
Villaseñor outlined critical action points: immediate delisting of unauthorized crypto apps, strict ISP-level enforcement to block access, deployment of advanced cybercrime tracking technologies, and a comprehensive digital literacy campaign to protect Filipinos from falling prey to crypto-enabled crimes.
“This systemic weakness creates a safe haven for foreign syndicates,” he warned. “The Philippines is no longer just a victim—it is rapidly becoming a launchpad for global organized crime.”
Unless decisive action is taken, Villaseñor added, the country faces the risk of institutionalizing lawlessness in its digital infrastructure, placing millions of Filipinos and the country’s global reputation in jeopardy.
