According to a Reuters report, the Philippines Securities and Exchange Commission (SEC) has taken steps to restrict access to Binance, the world’s largest cryptocurrency exchange in terms of trading volume.
Binance Faces Access Block In The Philippines
The SEC has announced its decision to block access to Binance within the Philippines. Per the report, the commission cited Binance’s lack of registration as a corporation in the country and its failure to obtain the required license and authority to sell “securities”.
The suspension is expected to take effect within three months of the SEC’s November 28 advisory. This extension is to allow Filipino users to withdraw their investments from the crypto exchange.
Notably, as part of its efforts to restrict the exchange’s operations, the SEC has reached out to Alphabet’s Google and Facebook’s parent company, Meta, asking them to ban Binance’s online advertising in the Philippines in an effort to limit the platform’s reach and prevent further investment activity in the country.
According to the SEC’s findings, the platform has been actively conducting promotional campaigns on various social media platforms to attract Filipino investors. While Binance may be accessed through its website, the Google Playstore, and the Apple App Store, the commission highlights that securities and investment products must be registered with the SEC before being sold or offered to the public.
The regulator stated that Binance, as an operator, is not registered as a corporation in the Philippines and lacks the necessary license and authority to engage in securities-related activities as outlined in the Securities Regulation Code.
Criminal Charges And Steep Penalties
The SEC’s advisory explicitly warns individuals involved in sales, brokerage, promotion, recruitment, or endorsement of Binance within the Philippines, including online means, that they may face criminal liability.
Section 28 of the Securities Regulation Code specifies that violators could be subject to a maximum fine of five million pesos (approximately $900,000), imprisonment for up to twenty-one years, or both.
Overall, the Philippine SEC has taken significant steps to restrict access to Binance, citing a lack of necessary registration and licensing requirements. With the guilty plea of the exchange’s former CEO, Changpeng Zhao (CZ), and the potential for criminal liability, concerns about Binance’s operations in the country continue to grow.
Filipino investors are urged to exercise caution while the industry closely follows the developments surrounding Binance and regulatory actions taken by the SEC.
As of the time of writing, the price of BNB stands at $228, indicating a 1.8% decline within the last 24 hours. Despite attempts, the token has been unable to stabilize above the $230 threshold, which can be attributed to the recent Binance settlement in the United States. This development caused a significant price drop of nearly 10% over the past fourteen days.
Featured image from Shutterstock, chart from TradingView.com