Philippines' senator pushes for tougher crypto rules after FATF exit
The Philippines’ senate is set to intensify the scrutiny on cryptocurrency use following a by senator Sherwin Gatchalian. The move addresses rising concerns over digital currencies linked to scam operations, particularly those connected to the now-banned Philippine Offshore Gaming Operators (POGOs).
Reportedly, Gatchalian warned that organised cybercriminals continue to exploit cryptocurrencies for fraudulent activities. He highlighted that illegal online gaming operators and digital transactions have enabled untraceable fund transfers, making law enforcement efforts difficult.
“We need to re-evaluate and strengthen the policy banning POGOs and reassess the use of cryptocurrencies in the country,” the senator stated.
“The use of cryptocurrencies in these scams warrants a second look as it poses a significant challenge to regulators due to its cross-border nature and concealability,” he added.
Hundreds duped in crypto scams
Philippine Offshore Gaming Operators (POGOs) were officially banned on 1 January 2025 after years of controversy over money laundering, online scams, and human trafficking. Yet, concerns persist that scammers are quickly adapting. Senator Gatchalian warns that banning POGOs alone won’t solve the problem and stresses the need for stricter cryptocurrency regulations to curb financial crimes.
A stark example supporting the call is the rise in online love scams. In January 2025 alone, the Philippine National Police Anti-Cybercrime Group recorded eight cases, adding to 72 reported incidents in 2024. One major scam in the Philippines targeted 5,000 Australians, swindling AU$24 million (€14.8 million). Most victims, men aged 35-80, were deceived through dating apps and manipulated into investing in fraudulent cryptocurrencies.
Hence, the senator emphasises that current legislation is inadequate to tackle evolving scams and called for better law enforcement strategies.
Beyond FATF: crypto scams still a worry
Moreover, the Philippines was recently removed from the Financial Action Task Force (FATF) “grey list” after completing its action plan to combat money laundering and terrorism financing. The government hopes this move will attract investment and boost economic growth.
However, experts warn that cryptocurrency-related financial crimes remain a threat.
Choon Hong Chua of Moody’s Financial Crime Practice Group echoed the need for ongoing oversight. “Exiting the grey list boosts confidence, but money laundering risks persist, particularly in online gaming and cryptocurrency,” he said.
Online gaming remains highly popular in the Philippines, generating ₱112 billion (€1.9 billion) in 2024, with electronic games accounting for nearly half. While a significant economic contributor, this sector also poses regulatory challenges.
Gatchalian’s call for stricter cryptocurrency oversight highlights the urgency of protecting Filipinos from financial exploitation while ensuring economic growth. The government faces the challenge of balancing innovation with security in the digital financial landscape.
