The Philippines froze $150 million in cryptocurrency assets in 2025 - not because of a hack, not because of a scam, but because the platforms holding those funds weren’t licensed to operate at all. This wasn’t a random crackdown. It was the government’s first major move to clean up a market that had exploded without rules.
By early 2025, Filipinos had invested over ₱6 trillion ($107 billion) in crypto. That’s more than the GDP of many small countries. People used apps like Coins.ph to buy Bitcoin, trade stablecoins, and send money across borders. It was fast, cheap, and accessible - especially for the 70% of adults without bank accounts. But behind the scenes, dozens of platforms were operating without any oversight. No KYC. No audits. No accountability.
What Exactly Got Frozen?
The Securities and Exchange Commission (SEC) of the Philippines targeted 20 unlicensed crypto exchanges in the first half of 2025. These weren’t foreign platforms like Binance or Coinbase. These were local services - some with Filipino names, some with local customer support - that had been taking deposits, running trading platforms, and offering staking rewards without ever applying for a license.
The frozen assets broke down like this:
- 68% were stablecoins - mostly USDT and USDC
- 22% were Bitcoin
- 10% were other altcoins like Ethereum, Solana, and Dogecoin
Most of the money lived on three blockchains: Ethereum (45%), Binance Smart Chain (30%), and Tron (15%). These networks made it easy for exchanges to move funds quickly - and hard for regulators to trace who owned what.
The SEC didn’t just shut them down. They froze the wallets. That means the money still exists on the blockchain. But no one can move it - not the exchange, not the users, not even the hackers.
Why Did the Government Act Now?
The answer is timing. In 2022, the Bangko Sentral ng Pilipinas (BSP) put a three-year pause on issuing licenses to crypto businesses. That pause was set to end on September 1, 2025. The SEC knew that if they didn’t act before then, the market would be flooded with unregulated platforms - some of them likely fronts for money laundering or fraud.
So in January 2025, the SEC dropped two new rules: MC No. 4-2025 and MC No. 5-2025. They defined what a “crypto-asset” was for the first time in Philippine law. They made it clear: if you’re offering crypto services as a business, you need a license. Period.
Then they went after the worst offenders. They didn’t wait for complaints. They didn’t issue warnings. They just froze the assets and published a public blacklist.
This wasn’t just about control. It was about survival. Chainalysis reported that in the first half of 2025, criminals stole $2.17 billion from crypto services worldwide. The Philippines was one of the fastest-growing crypto markets - and one of the most vulnerable. If regulators did nothing, the country risked becoming a global hotspot for crypto crime.
Who Lost Money?
Here’s the painful part: the people who lost money weren’t necessarily criminals. Many were ordinary Filipinos.
Reddit threads like “My $15k frozen in Bitget PH - What now?” got over a thousand upvotes. Users posted screenshots of their wallets with balances that suddenly vanished. Some had been using these platforms for years. They thought they were safe because the apps looked legit. They didn’t know the difference between a licensed exchange and a blacklisted one.
Trustpilot reviews for the affected platforms dropped from 4.2 stars to 1.3 in just two months. The top complaints? “Funds frozen without warning” and “No clear process to get my money back.”
The Philippine Consumer Welfare Association recorded 3,215 formal complaints between January and June 2025. The average loss per person? $4,670. For many, that was their entire savings.
And here’s the kicker: 78% of crypto users in the Philippines had no idea what the licensing rules even were. The government didn’t do enough to educate people. They just moved fast - and left thousands in the dark.
Can You Get Your Money Back?
Yes - but it’s not easy.
In April 2025, the SEC created the Crypto Asset Recovery Unit (CARU). If you think your funds were frozen by mistake, you have to apply. You need:
- A government-issued ID
- Proof of ownership - transaction hashes, wallet addresses, screenshots
- A sworn statement that your funds weren’t from illegal activity
By July 2025, only 12% of applicants had been approved. That’s about 3,840 people out of an estimated 32,000 affected users.
Why so low? Three big reasons:
- 34% of applicants didn’t submit complete documents - missing wallet addresses, unclear screenshots, expired IDs
- 22% were flagged for further review because their transaction history looked suspicious
- Many users didn’t know how to find their transaction hashes or how to use blockchain explorers like Etherscan
It’s a digital literacy problem. The average applicant was 38 years old. 28% were over 50. For them, blockchain isn’t just confusing - it’s intimidating.
Coins.ph, one of the few licensed platforms, saw a 300% spike in support tickets. Resolution times jumped from 12 hours to 72 hours. They’re helping - but they’re overwhelmed.
What’s Next for Crypto in the Philippines?
The freeze wasn’t the end. It was a reset.
On September 1, 2025, the BSP lifted its three-year ban on issuing licenses. On September 15, the first round of applications opened. Ten platforms were selected to join a “Regulatory Sandbox” - meaning they can operate legally for a year while regulators watch closely.
The SEC also promised to start releasing verified funds starting November 1, 2025. But legal battles are brewing. Bitget and Bybit are challenging the freeze in court, claiming their Philippine operations were legitimate.
Meanwhile, lawmakers are pushing House Bill No. 4792, which would create the National Council on Digital Assets and Tokenized Investments (NCDATI). If passed, this would be the first unified crypto regulator in the country - not just a department within the SEC.
Experts say the Philippines could become a model for other developing countries. It’s balancing innovation with safety. But that balance is fragile.
The Bigger Picture
The U.S. froze $150 million in crypto too - but that was for sanctions. The Philippines froze $150 million because platforms broke their own country’s rules. That’s a huge difference.
It shows a new kind of crypto regulation: not about stopping crime, but about stopping chaos. The government didn’t want to be the next Venezuela or Nigeria - where crypto became a tool for escape, not empowerment. They wanted to build something sustainable.
But the cost? Thousands of people lost access to their money. Some are still waiting. Some gave up. Some lost trust in the entire system.
The lesson? Regulation isn’t just about rules. It’s about communication. It’s about making sure people know what’s allowed - before they lose everything.
The Philippines didn’t kill crypto. It forced it to grow up. Whether that’s a win or a tragedy depends on who you ask.
Why were $150 million in crypto assets frozen in the Philippines?
The Philippine Securities and Exchange Commission (SEC) froze $150 million in crypto assets in 2025 because they belonged to 20 unlicensed cryptocurrency exchanges. These platforms were offering trading, staking, and wallet services without legal authorization under new regulations introduced in January 2025. The freeze was part of a broader effort to clean up the market before the central bank lifted its three-year ban on issuing crypto licenses.
What types of crypto were frozen?
The frozen assets were mostly stablecoins - 68% were USDT and USDC. Bitcoin made up 22%, and other altcoins like Ethereum and Solana accounted for the remaining 10%. The funds were spread across Ethereum (45%), Binance Smart Chain (30%), and Tron (15%) blockchains.
Can I get my money back if my crypto was frozen?
Yes, but it’s complicated. The SEC created a Crypto Asset Recovery Unit (CARU) where affected users can apply to recover funds. You need to prove your identity, show transaction records, and confirm your funds weren’t from illegal activity. As of July 2025, only 12% of applicants were approved. Many were rejected for incomplete paperwork or flagged for suspicious activity.
How many people were affected by the freeze?
An estimated 32,000 individual users had funds frozen across the 20 blacklisted platforms. The average loss per person was $4,670. The Philippine Consumer Welfare Association received over 3,200 formal complaints between January and June 2025.
Is crypto still legal in the Philippines?
Yes, crypto is still legal. But now you can only use platforms that are licensed by the Bangko Sentral ng Pilipinas (BSP) or registered with the SEC. Unlicensed exchanges are banned. The BSP lifted its license moratorium on September 1, 2025, and the first licensed platforms began operating under a regulatory sandbox in mid-September.
What’s the difference between the Philippines’ crypto freeze and the U.S. OFAC freeze?
The U.S. OFAC freeze targets assets linked to sanctioned individuals or terrorist groups - it’s about international law. The Philippines’ freeze targets unlicensed domestic businesses - it’s about national regulation. One is about sanctions; the other is about compliance.
Will more crypto assets be frozen in the future?
It’s unlikely there will be another mass freeze like this one. The SEC has now established clear rules and a licensing system. Future enforcement will focus on individual violations - like fraud or money laundering - rather than blanket freezes of entire platforms. The goal now is to keep the market clean, not to clean it up all at once.
