Philippine bars access to Binance, citing unregistered operations

abdelaziz Fathi

The Philippines’ Securities and Exchange Commission (SEC) is moving to block access to Binance due to regulatory concerns, citing the platform’s operation without proper registration and authorization in the country.

Philippine

The SEC warned that Binance was “not authorized to sell or offer securities to the public in the Philippines, pursuant to Republic Act No. 8799, or The Securities Regulation Code (SRC).”

Binance’s operator is not a registered corporation in the Philippines, and as such, is not authorized to sell or offer securities or other investment products to the public. The SEC highlighted that Binance has been actively promoting crypto trading to Filipinos, including through social media, which is considered an offense under Philippine law.

In its advisory, the SEC warned that individuals acting as promoters, recruiters, influencers, endorsers, or enablers for Binance in the Philippines, even through online channels, could face criminal liability. The penalties for these offenses could include fines up to 5 million Philippine Pesos (roughly $90,000) or imprisonment for up to 21 years.

The Philippine SEC is seeking the assistance of the National Telecommunications Commission to implement the block on Binance’s domains. Additionally, the regulator has directed tech giants like Google and Meta to stop displaying local ads from the world’s largest cryptocurrency trading platform.

The block on Binance’s access in the Philippines is set to take effect within three months from the release date of SEC’s advisory on November 28, giving Filipino users time to withdraw their investments from the exchange.

In response, Binance said was aware of the statement made by the country’s financial regulator and respect it.

“At Binance, we are committed to aligning with applicable local regulations. Under our new leadership, we have taken proactive steps to address the SEC’s concerns,” its statement said.

Philippines’ local laws mandate that entities seeking to participate in activities involving buying or selling securities, functioning as a broker-dealer, or establishing and managing a securities exchange must obtain an additional license from the SEC.

This development follows the recent resignation and guilty plea of former Binance CEO Changpeng Zhao in the U.S. for failing to comply with anti-money laundering rules. Binance itself agreed to pay over $4.3 billion and pleaded guilty to breaking the federal AML and sanctions laws.

  • Read this next

    Retail FX

    Lark Funding reopens to US traders, MyFundedFX picks cTrader

    Canada-based prop trading firm Lark Funding announced it will once again welcome clients from the United States.

    Institutional FX

    Cboe FX volume falls to lowest level since summer

    Cboe’s institutional spot FX platform, known as Cboe Spot, today announced its trading volume for the month ending February 2024, which took a step back after a strong rebound in December.

    Retail FX

    ThinkMarkets secures lucrative DFSA license in Dubai

    Melbourne-based broker ThinkMarkets has secured a license from the Dubai Financial Services Authority (DFSA) after it has already incorporated its new subsidiary in the Dubai International Financial Center (DIFC).

    Digital Assets

    New Horizen Lays Out Its Vision Of A Modular, Proof Verification Layer For Web3 Networks

    Horizen is forging a new path for the future of blockchain with its New Horizen initiative, which is building a modular Proof Verification layer that’s dedicated to verifying cryptographic proofs for any settlement layer, beginning with Ethereum. 

    Digital Assets

    Karma3 Labs Raises a $4.5M Seed Round Led By Galaxy and IDEO CoLab to Build OpenRank, a Decentralized Reputation Protocol

    Using OpenRank, developers and web3 companies can build consumer apps where people can discover, use, fund, read, or buy something on-chain without worrying about getting spammed or scammed.

    Digital Assets

    Worldcoin down as Elon Musk sues OpenAI CEO Sam Altman

    Worldcoin’s (WLD) token dropped following news of a lawsuit against related company OpenAI. The lawsuit was filed by Elon Musk and accused OpenAI and CEO Sam Altman of breach of contract.

    Institutional FX

    Exegy’s Liquidity Lamp adds intraday data to outperform S&P 500 by 31.8%

    Exegy has incorporated intraday signals into its AI-powered iceberg order detection tool, Liquidity Lamp. By adding intraday data to a baseline mean reversion strategy, Exegy’s model outperformed the baseline by 10.5% and the S&P 500 (SPY) by 31.8%, respectively in the out-of-sample testing.

    Industry News

    Think Elon Musk backed your crypto exchange? ASIC’s latest reveal may shock you

    In an absolutely shocking turn of events that nobody could have possibly seen coming, the Australian Securities and Investments Commission (ASIC) has bravely stepped forward to reveal that, yes, those videos of Elon Musk passionately endorsing a cryptocurrency exchange are as fake as a three-dollar bill.

    Fundamental Analysis

    Global FX Market Summary: EUR, USD March 1st, 2024

    The ISM’s February Manufacturing PMI is expected to show a slight increase, but remain below the expansionary threshold, while inflationary pressures persist and a Fed rate cut in June is still possible.

    <