Coins.ph Faces Potential Sanctions Over Alleged Offshore Gambling Links

Philippines.- 16 October 2026 | www.zonadeazar.com Coins.ph, one of the Philippines’ leading cryptocurrency and digital financial services platforms, is reportedly facing regulatory action from the Bangko Sentral ng Pilipinas (BSP), the country’s central bank, over alleged transactions involving offshore gambling operators.

According to reports published on 15 October 2026, authorities may be considering penalties that could potentially include the revocation of certain operating licences.

However, Coins.ph has rejected the allegations and maintains that it continues operating under valid regulatory authorisations, while strengthening its internal controls.

The case highlights growing scrutiny of the relationship between cryptocurrency services, digital payments and unauthorised gambling activities.

Central Bank Reportedly Considers Enforcement Measures

The controversy emerged following reports that the BSP was examining financial transactions allegedly linked to offshore gambling businesses.

According to people familiar with the matter, some of these transactions may have breached regulatory obligations applicable to financial services providers.

One source suggested the alleged violations could be serious enough to justify licence revocation.

Nevertheless, no final BSP decision to revoke Coins.ph’s operating authorisations has been confirmed.

The situation remains subject to regulatory consideration and the company’s ongoing compliance measures.

Coins.ph Rejects the Allegations

The company issued a public response addressing the reports.

Coins.ph denied knowingly providing services to offshore gaming or gambling operators and stated that it maintains procedures designed to identify and exclude unauthorised businesses.

The platform also emphasised that:

• Customer funds remain safe.
• It continues operating as a BSP-licensed institution.
• Customer and transaction monitoring procedures remain in place.
• Internal controls are being strengthened.
• Work is under way to restore affected services.

The company reaffirmed its commitment to financial regulation and anti-money laundering requirements.

However, its statement does not in itself establish a definitive conclusion regarding the transactions under scrutiny.

Restrictions on DCPay Philippines

The first confirmed regulatory restrictions emerged in late September 2026.

The BSP imposed a partial suspension affecting certain operations of DCPay Philippines, the company responsible for Coins.ph’s Philippine peso electronic wallet services.

The measure was introduced under Monetary Board Resolution No. 839.

The country’s payments clearing infrastructure subsequently communicated restrictions on receiving funds through certain banking networks.

The measures principally affect customers’ ability to add money to their digital wallets.

Importantly, these restrictions do not amount to the revocation of all Coins.ph operating licences.

Which Services Remain Available?

The regulatory restrictions have not resulted in a complete shutdown of the platform.

According to the company, the current service status is as follows.

Temporarily unavailable:

• Incoming transfers through InstaPay.
• Peso deposits through PESONet.
• Certain QRPh collection services.

Still available:

• Customer withdrawals.
• QRPh merchant payments.
• Bill payments.
• Cryptocurrency trading.

Coins.ph said it is working to restore the affected functions but has not announced a definitive timetable.

Separate Companies and Regulatory Licences

Coins.ph operates through entities holding different regulatory authorisations.

DCPay Philippines Inc.

This business is responsible for electronic money services and transactions involving Philippine peso wallets.

It is the entity affected by restrictions on certain incoming payment channels.

Betur Inc.

This company provides digital asset-related services under a separate Virtual Asset Service Provider (VASP) licence.

The distinction is important when assessing the scope of the regulator’s actions.

Restrictions imposed on DCPay do not automatically mean Betur’s cryptocurrency activities have lost their regulatory authorisation.

Background: The August 2025 Gambling Restrictions

The controversy is linked to restrictions introduced by the Philippine central bank in August 2025.

At that time, the BSP instructed supervised financial institutions to remove in-app links directing customers to gambling websites.

The institutions were given 48 hours to comply.

The measure aimed to reduce consumer exposure to gambling-related risks through electronic wallet applications.

According to sources cited in recent reports, some offshore gambling businesses subsequently redirected their financial transactions towards Coins.ph.

This remains a reported allegation rather than a violation established by a final regulatory finding.

Cryptocurrency and Stablecoins Under Scrutiny

A significant aspect of the case concerns the potential use of cryptocurrencies for international payments.

Digital asset platforms allow funds to be converted between traditional currencies and cryptocurrencies, including instruments known as stablecoins.

Prominent examples include:

• USDT, designed to track the US dollar.
• USDC, another US dollar-referenced stablecoin.

According to the reports, certain offshore gambling businesses may have sought to use such assets to settle payments with international partners.

These arrangements can create supervisory challenges when multiple jurisdictions and financial intermediaries are involved.

However, using cryptocurrencies or stablecoins is not inherently unlawful.

Regulatory concerns instead focus on the identity of participants, the legality of underlying transactions and compliance with applicable financial obligations.

A Major Platform in the Philippine Crypto Market

Coins.ph holds a significant position within the Philippine digital asset ecosystem.

According to estimates cited in reporting on the case, the platform accounts for approximately 75% to 80% of Philippine peso-to-stablecoin liquidity.

The business also serves a substantial customer base using its financial and cryptocurrency services.

Its market position explains why restrictions on payment channels may have implications beyond the company itself.

Potential effects include:

• Difficulties funding accounts from certain banks.
• Changes in options for converting local currency into digital assets.
• Greater attention to regulatory authorisations among customers and businesses.
• Compliance reviews by other financial technology platforms.

The extent of these effects will depend on the duration and scope of the restrictions.

Changes Within the Compliance Team

Reports also highlighted changes among personnel responsible for regulatory compliance.

Several senior employees involved in compliance and anti-money laundering functions reportedly left the company during 2026.

These included Lexi Herrera, the company’s former Chief Compliance Officer.

Personnel changes in these areas attract attention when financial services providers face heightened regulatory scrutiny.

However, no direct connection has been established between these departures and the alleged offshore gambling transactions.

The company remains responsible for ensuring that its internal controls meet the requirements of financial regulators.

Increased Oversight of Offshore Gambling

The Philippines has strengthened restrictions on offshore gambling activities in recent years.

These measures have increased regulatory attention on businesses providing financial services to offshore gaming operators.

The Coins.ph case demonstrates that oversight can extend beyond companies directly offering gambling products.

It may also involve:

• Electronic wallet providers.
• Cryptocurrency exchanges.
• Payment processors.
• Virtual asset service providers.
• Financial intermediaries.
• Businesses facilitating international transfers.

Customer identification and transaction monitoring remain central components of these regulatory requirements.

Next Steps and Impact

The situation involving Coins.ph remains unresolved and will depend on further action by the Bangko Sentral ng Pilipinas and the company’s compliance response.

For now, a partial restriction on incoming payment services operated by DCPay Philippines is confirmed, while the possibility of licence revocation remains based on reports that have not been officially confirmed.

Coins.ph maintains that its authorisations remain valid, customer funds are safe and efforts are continuing to restore affected services.

For the iGaming and digital asset industries, the case highlights the importance of effective oversight of transactions involving gambling operators, particularly where international payments and stablecoins are concerned.

It also illustrates increasing regulatory scrutiny of financial intermediaries connecting cryptocurrency services with gambling-related activities.

Editó: @fonta