Daven Tamayo

‘Blind spots’: Expert sounds alarm as unlicensed cryptocurrencies being used in crimes

Logos of Bitcoin and different cryptocurrencies are displayed during the Token2049 conference at  the Token2049 conference in Dubai on May 1, 2025. (Photo by Giuseppe CACACE / AFP)

Article (news)

Job Manahan

ABS-CBN News

MANILA – An IT expert on Tuesday urged the public to be wary of unlicensed cryptocurrency platforms and urged Philippine regulators to “decisively clamp down” on these, as cryptocurrencies have been used for crimes.Reyner Villaseñor, a co-chair of the European Chamber of Commerce of the Philippines (ECCP) ICT committee, described unlicensed cryptocurrency platforms as the “financial backbone of organized crime syndicates” here and abroad.<div><a href="https://www.abs-cbn.com/news/technology/2025/1/28/cryptocurrency-being-used-in-drug-trade-cicc-pdea-1608">Illegal drug payments now made through cryptocurrency, agencies say</a></div>Villaseñor added that these were used to move millions of pesos with “little to no trace”.“Criminal syndicates are exploiting regulatory gaps to carry out diverse illegal activities, using unlicensed and unregulated cryptocurrency platforms as their tools,” said Villaseñor in a release.He added that losses in cybercrime incidents among supervised financial institutions reached P5.82 billion in 2024, citing data from the Bangko Sentral ng Pilipinas.“Criminals exploit these blind spots to launder ransom payments, conceal profits from human trafficking, and move massive sums without triggering regulatory red flags,” the statement read.He also noted that the P200-million ransom paid for businessman Anson Que was converted into cryptocurrency, making it harder for authorities to trace its movement.The Philippine National Police earlier said the funds were transferred from 9 Dynasty and White Horse Club, then the funds were transferred into at least 10 different accounts using e-wallet services. The funds were then converted into cryptocurrency and moved to crypto wallets.The Anti-Money Laundering Council (AMLC) said it continues to investigate the case.Villaseñor urged the Securities and Exchange Commission (SEC), the Department of Information and Communications Technology (DICT), the Bangko Sentral ng Pilipinas (BSP), and other relevant agencies to immediately delist unauthorized crypto apps and deploy advanced cybercrime tracking tech.Villaseñor said authorities should also conduct a strict ISP-level enforcement to block access as well as have a “comprehensive digital literacy campaign to protect Filipinos from falling prey to crypto-enabled crimes.”In 2024, the Philippine Securities and Exchange Commission (SEC) asked the National Telecommunications Commission (NTC) to block the website and other pages of cryptocurrency giant Binance.<div><a href="https://www.abs-cbn.com/business/11/22/23/binance-to-pay-billions-in-us-in-money-laundering-case-ceo-resigns"> Binance to pay billions in US in money laundering case, CEO resigns</a></div>The crypto trading platform is not registered in the Philippines and is therefore not authorized to sell or offer securities in the country, the regulator said.In late 2023, former Binance chief executive Changpeng Zhao resigned from his post after he and the company pleaded guilty to US money laundering violations and agreed to fines of more than $4 billion.Authorities earlier this year confirmed that drug traffickers have been using a cryptocurrency platform to transact payments, which included USDT or Tether platform.The Cybercrime Investigation and Coordinating Center (CICC) pledged to provide resources and technical expertise to PDEA representatives to facilitate data sharing with agencies relevant to the investigation and prosecution of drug-related activities.

An IT expert on Tuesday urged the public to be wary of unlicensed cryptocurrency platforms and urged Philippine regulators to “decisively clamp down” on these, as cryptocurrencies have been used for crimes.

An IT expert on Tuesday urged the public to be wary of unlicensed cryptocurrency platforms and urged Philippine regulators to “decisively clamp down” on these, as cryptocurrencies have been used for crimes.