Local authorities in the Philippines claim crypto exchange Binance operates illegally in the country.

The Philippines Securities and Exchange Commission (SEC) warned locals on Wednesday that Binance has no license to sell or offer securities in the nation. Let’s discover more about this important news.

Binance is Ilegal in the Philippines?

The Philippine’s SEC requires crypto companies to submit an application for registration before offering securities. These platforms have to provide comprehensive details regarding the securities they offer. So, it requires crypto exchanges like Binance to submit information such as the nature of their offerings, pricing, and other details.

The Philippine Commission said in its statement: “Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the SRC.”

Securities issuers must register with the Philippines under the Securities Regulation Code (SRC) prior to making their securities available for purchase. The code also demands that these issuers obtain a secondary license to sell or offer securities to the general public.

More About Binance in the Philippines

Aside from offering illegal services, the Philippine SEC claimed Binance actively promotes cryptocurrency trading to Filipinos on social media. The regulator considers such promotions as illegal. And might result in criminal charges.

Section 73 of the SRC states that illegal promotion is a criminal violation. Violators could face jail time or a fine of up to 5 million Philippine pesos ($90,300).

The SEC Seeks to Block Binance

Binance recently underwent a leadership change. The exchange’s founder, Chanpeng Zhao, stepped down from his role last week. The decision was part of a settlement deal with the US SEC.

Earlier this week, the new Binance CEO, Richard Teng, distanced himself from the exchange’s compliance problems with regulators. Teng promised to increase adoption and improve investor trust.

The information discussed by Altcoin Buzz is not financial advice. This is for educational, entertainment, and informational purposes only. Any information or strategies are thoughts and opinions relevant to the accepted levels of risk tolerance of the writer/reviewers and their risk tolerance may be different than yours. We are not responsible for any losses that you may incur as a result of any investments directly or indirectly related to the information provided. Bitcoin and other cryptocurrencies are high-risk investments so please do your due diligence.

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