Binance, the world’s largest cryptocurrency exchange by trading volume, is facing a ban in the Philippines after the country’s financial regulator flagged concerns regarding the firm’s unlicensed operations.
In November, the Philippines Securities and Exchange Commission warned Binance that it was operating in the country without obtaining the necessary licenses.
Binance Facing Philippines Ban
The Philippines Securities and Exchange Commission announced the decision in a notice published on Monday. According to the notice, the country’s regulator stated that it received the assistance of the National Telecommunication Commission (NTC) to block local access to the Binance website and online trading platform. The SEC’s Chairperson, Emilio B. Aquino, stated in the letter request,
“The SEC has identified the aforementioned platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.”
The Philippines SEC filed a formal request with the National Telecommunication Commission on the 12th of March to help block the website and other web pages Binance used. The SEC stated that Binance’s online pages offered users an investment and trading platform without acquiring the necessary licenses from the country’s financial watchdog. The regulator also alleged that Binance had been actively promoting its platform for investment and trading activities in violation of the Securities Regulation Code.
Ban To Take Effect In Three Months
According to the SEC, the ban will take effect in three months. This window gives investors enough time to exit their positions held through Binance and withdraw any funds held on the platform. The move to block the platform in the country follows the previous warning by the SEC in November 2023.
“Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance in selling or convincing people to invest in its platform within the Philippines, even through online means, may be held criminally liable under Section 28 of the Securities Regulation Code.”
Another Setback For Binance
The ban is the latest in a series of regulatory blows to Binance, which has come under increased scrutiny across the globe. In December 2023, Binance was ordered to pay a $2.7 billion fine by a US court, and former CEO Changpeng Zhao had to pay a $150 million fine to the Commodity Futures Trading Commission (CFTC). This settlement marked the end of long-running legal action against the platform, which the CFTC also sued for evading federal law and operating an illegal derivatives exchange.
Changpeng Zhao stepped down from his role as the CEO of Binance as part of a larger settlement with the United States Department of Justice, the Commodity Futures Trading Commission, and the Treasury Department. Zhao has also pleaded guilty to several civil charges and one criminal charge related to Anti-money laundering laws.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
