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 SEC has issued an advisory: Binance, operating without authorization, has been promoting on social media in the Philippines. Those acting as brokers or promoters for such unregistered entities risk criminal charges, fines up to ₱5m, or jail time. 🇵🇭 pic.twitter.com/u1vqRVwMx9
— Crypto India (@CryptooIndia) November 29, 2023
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).
My prediction on @binance . Regulators will fabricate massive fraud and force them into bankruptcy. Then the largest legacy institutions will purchase all of their assets in liquidation to make sure they hold the majority of the useful crypto assets. And finally, a flood of…
— Crypto Value Hunter (@majesticboss55) November 28, 2023
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.
CZ steps down as Binance CEO and pleads guilty to money laundering charges. pic.twitter.com/BDwbIiaU24
— YabaLeftOnline (@yabaleftonline) November 21, 2023
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.
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