- Philippine SEC to block Binance citing unlicensed operation, with support from the National Telecommunication Commission.
- Binance accused of offering investment products without the necessary licenses, violating local securities laws.
- The restriction provides a three-month window for investors to withdraw from Binance; SEC also targets online ads.
The Philippine Securities and Exchange Commission (SEC) is taking steps to restrict access to Binance, the globally renowned cryptocurrency exchange, within the nation. This decision stems from concerns about Binance’s lack of appropriate licensing for its operations in the Philippines.
Regulatory Action and Assistance
The SEC has sought the collaboration of the National Telecommunication Commission (NTC) to enforce the blockade on Binance’s online presence, aiming to safeguard Filipino investors from potential risks associated with the platform’s services. The move underscores the regulator’s commitment to maintaining a secure investment environment in the country.
Concerns Over Unlicensed Services
The SEC’s apprehensions revolve around Binance’s offering of various investment products, such as leveraged trading and cryptocurrency savings accounts, without adhering to the licensing requirements set forth in the Securities Regulation Code. This discrepancy has led to the decision to limit the platform’s accessibility to Philippine users.
Transition Period and Broader Implications
To accommodate investors currently engaged with Binance, the SEC has instituted a three-month period, allowing them time to divest their holdings. Additionally, the commission has approached major tech giants like Google and Meta, requesting the cessation of Binance-related advertisements targeting the Filipino audience.
This regulatory measure against Binance in the Philippines adds to the exchange’s growing list of challenges on the global stage, following significant legal and financial settlements in other jurisdictions. The actions taken by the Philippine SEC reflect a broader trend of increased scrutiny and regulatory enforcement within the cryptocurrency sector, emphasizing the importance of compliance with local and international laws.
