Philippine SEC Exposes Binance’s Illegal Operations
The Philippine Securities and Exchange Commission (SEC) has revealed that Binance, a popular cryptocurrency exchange, is offering securities illegally in the country. It is mandatory for securities to be registered with the SEC, which applies to both corporations and licensed dealers operating in the Philippines.
This revelation comes shortly after the US Department of Justice filed a lawsuit against Binance for money laundering charges, and Binance CEO CZ pleaded guilty.
Binance Unmasked: Unregistered and Unauthorized
Startling details from the SEC’s database have exposed Binance as an unregistered platform in the Philippines, operating without the necessary license to offer securities. Investors are strongly advised against engaging with such platforms.
The SEC states that Binance can be accessed through its website, Google Play store, and Apple App Store. The platform claims to provide trading services for financial instruments, including cryptocurrency spot trading with leverage and futures contracts.
The SEC emphasizes the need for caution when considering investments on unregistered online platforms. Promoting Binance within the Philippines could result in criminal charges and significant penalties under the Securities Regulation Code.
SEC’s Advisory for the Public
The SEC is urging the public to take heed of its advisory titled “Advisory against Dealing with Non-Registered Foreign Entities, Organizations, and Corporations.” It is crucial to exercise vigilance when dealing with investment platforms, especially those that lack proper registration and authorization.
In the Philippines, even if operators appear as registered brokers/dealers overseas, they must fulfill specific requirements before selling or offering securities and investment products to the public. These requirements include registration with the SEC, issuer credentials, and a secondary license.
In light of these findings, the SEC highlights the importance of conducting thorough due diligence. Engaging with unregistered platforms like Binance carries risks, and individuals promoting such platforms may face severe legal consequences.
Furthermore, sports star Cristiano Ronaldo is facing a lawsuit for endorsing the exchange. The plaintiffs claim that Ronaldo promoted the marketing and sale of unregistered securities. Ronaldo had signed a multi-year agreement with Binance to promote his own Non-Fungible Tokens (NFTs).
Hot Take: Philippine SEC Warns Binance for Illegally Operating in the Country
The Philippine Securities and Exchange Commission has uncovered significant evidence indicating that Binance, a leading cryptocurrency exchange, is operating unlawfully in the country by offering securities without proper registration. This revelation comes shortly after the US Department of Justice sued Binance for money laundering charges, further tarnishing the exchange’s reputation.
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