Coins.ph stated that its license from the Bangko Sentral ng Pilipinas (BSP) remains intact, refuting reports suggesting potential revocation due to alleged transactions involving restricted offshore gambling operators. The company emphasized that user funds are safe and it continues to operate as a licensed institution, firmly denying any claim that it knowingly serves such entities.
The controversy stems from recent restrictions imposed by the BSP on incoming InstaPay and PESONet transfers involving DCPay Philippines, the entity operating Coins.ph’s peso e-wallet services. Local media reported these measures were enacted under BSP Monetary Board Resolution No. 839. While DCPay holds an electronic money issuer license, Betur Inc., which operates the exchange’s crypto asset services, holds a separate virtual asset service provider license. The restrictions reportedly targeted DCPay’s payment operations rather than Betur’s crypto services.
In response to the regulatory scrutiny, Coins.ph acknowledged that the BSP had instructed it to strengthen internal controls. Consequently, cash-in services and QRPh collections were temporarily suspended, though crypto trading, cash-outs, bill payments, and merchant QRPh payments remained accessible. A company spokesperson declined to confirm or deny whether offshore gambling entities had used the platform regardless of awareness, citing pending internal clarification. The BSP has not publicly linked this specific directive to the broader 2025 order requiring financial institutions to remove links to gambling websites.
This incident highlights the complex regulatory landscape for dual-license structures in the Philippine crypto sector, where payment and virtual asset services are often operated by distinct legal entities. The distinction between DCPay’s electronic money issuer license and Betur’s VASP license is critical; while the former faces operational restrictions on fiat inflows, the latter’s core crypto trading functions remain active. This separation suggests regulators are targeting specific compliance failures in payment rails rather than shutting down the entire exchange ecosystem, indicating a nuanced approach to enforcement that balances consumer protection with market continuity.
From a Compliance perspective, the situation underscores the heightened scrutiny on offshore gambling connections within local fintech platforms. Although Coins.ph denies knowing involvement, the inability to immediately confirm or deny transactional history reflects the opacity often found in cross-border digital finance. Investors and users should monitor whether the strengthened internal controls mandated by the BSP lead to further transparency regarding counterparty risks, as unresolved allegations could trigger more severe regulatory actions if independent audits reveal systemic lapses in anti-money laundering protocols.
