Philippines Securities Regulator Moves to Block Crypto Exchange Binance
The Securities and Exchange Commission (SEC) of the Philippines has decided to block local user access to cryptocurrency exchange Binance. The move comes in response to concerns over the firm’s unlicensed operations in the country. The SEC alleged that this poses a threat to the security of Filipino investors’ funds.
Key points:
- The SEC has received assistance from the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform.
- The financial watchdog claims Binance offers investment products without the required licenses, violating the Securities Regulation Code.
- The ban will take effect within three months to allow investors time to exit their positions held through Binance.
- The SEC has asked Google and Meta to block Binance-related advertising from appearing on their platforms for Filipino users.
Read more: Spot Bitcoin ETFs Hit Record Five-Day Streak Of Net Outflows Amid Weak Inflows
In a letter-request addressed to the NTC, SEC Chairperson Emilio B. Aquino stated, “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.”
Philippines says Binance offers leveraged trading without license
The SEC alleges that Binance offers investment products such as leveraged trading services and crypto savings accounts without the necessary licenses.
To minimize the impact on investors, the ban will come into effect within three months. This will provide users with a window to exit any positions they hold through Binance. The SEC has also requested that Google and Meta block any Binance-related advertising from appearing on their platforms for Filipino users.
Read more: EU Parliament Committees Approve Ban On Anonymous Crypto Transactions
The ban in the Philippines is the latest in a series of regulatory challenges faced by the exchange worldwide. In December, a U.S. court ordered Binance to pay $2.7 billion and its former CEO, Changpeng “CZ” Zhao, to pay $150 million to the Commodity Futures Trading Commission (CFTC). The exchange is also currently facing ongoing scrutiny from Nigerian regulators.
