Coins.ph denies license risk after BSP restricts e-wallet

The Bangko Sentral ng Pilipinas has restricted incoming electronic fund transfers to DCPay Philippines, the licensed entity behind the peso e-wallet services of crypto exchange Coins.ph, triggering questions about the platform’s regulatory standing and its exposure to the country’s illicit offshore gambling economy.

Under Monetary Board Resolution No. 839, the central bank blocked DCPay from receiving InstaPay and PESONet transfers. The enforcement action effectively severed a primary fiat on-ramp for one of Southeast Asia’s most active digital asset markets. Coins.ph recorded approximately $52 million in 24-hour spot trading volume on Wednesday, according to CoinGecko data.

DCPay holds an electronic money issuer license, which governs the movement of Philippine pesos through the platform’s wallet infrastructure. Betur Inc., a separate corporate entity, operates the exchange’s crypto asset services under a distinct virtual asset service provider registration. The central bank’s restrictions targeted DCPay’s payment operations specifically, leaving Betur’s cryptocurrency trading, cash-outs, bill payments, and merchant QRPh transactions functional. Cash-in services and standard QRPh collections — the national QR code payment network established by the BSP — were temporarily disabled.

Coins.ph pushed back against speculation that the enforcement action threatened its broader operating authority. “Our users’ funds are safe; we continue to operate as a BSP-licensed institution,” the company said in a statement, adding that it “firmly denies any claim that it knowingly serves offshore gaming or gambling operators.” When pressed on whether restricted entities had utilized the platform regardless of the company’s awareness, a spokesperson declined to confirm or deny, stating the matter required internal review.

The distinction between willful facilitation and passive exploitation sits at the center of the Philippine financial regulator’s current enforcement posture. Offshore gaming operators, commonly known as POGOs, have historically exploited domestic e-wallets and remittance networks to move unregulated capital. Despite a sweeping government ban on POGO operations initiated in 2024, underground gambling syndicates continue routing funds through legitimate payment rails using mule accounts and layered transactions.

In 2025, the BSP mandated that all supervised financial institutions strip direct links to gambling websites from their payment applications. While the central bank has not publicly connected that directive to the specific restrictions placed on DCPay, the timeline aligns with a broader supervisory crackdown on virtual asset platforms functioning as shadow banking channels for prohibited industries.

The incident exposes a structural vulnerability inherent in hybrid fintech models operating across heavily regulated fiat systems and decentralized asset networks. Because DCPay and Betur function under separate licenses, regulators can isolate and penalize fiat payment failures without shutting down the underlying crypto exchange. However, for retail users relying on seamless peso-to-crypto conversions, the suspension of InstaPay and PESONet inflows creates immediate friction, forcing traders to seek alternative liquidity channels or peer-to-peer settlement methods outside the platform’s native architecture.

Philippine authorities are currently evaluating a formal freeze on new payment operator registrations alongside stricter vetting protocols for virtual asset service providers, signaling that the scrutiny applied to DCPay may soon become the baseline compliance standard for the entire sector.

The Bangko Sentral ng Pilipinas received an inquiry regarding the specific violations cited in Resolution No. 839 but had not issued a public comment as of Wednesday.