Philippine Securities and Exchange Commission Warns Against Binance
In a recent announcement, the Philippine Securities and Exchange Commission (PSEC) cautioned users that Binance is not registered under its regulatory framework. The PSEC also stated that the crypto exchange is not authorized to deal in securities, citing the United States’ position on digital assets. As a result, the PSEC has requested assistance from the National Telecommunications Commission (NTC) to block access to Binance. This action comes after a local thinktank called for an investigation into Binance’s activities in the country last year.
Registration and Compliance Requirements
The PSEC emphasized that Binance must register with the agency and provide information on securities to users as part of due diligence and compliance procedures before obtaining a license. The commission also highlighted that Binance’s promotion of its cryptocurrency services could be considered a criminal offense, punishable by a fine of 5 million Philippine Pesos (approximately $90,000) and up to 21 years in prison.
“Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance in selling or convincing people to invest in its platform within the Philippines may be held criminally liable,” said the commission.
Binance’s Legal Troubles
Binance, the world’s largest cryptocurrency exchange, has recently faced significant legal challenges. Its founder and CEO Changpeng Zhao (CZ) pleaded guilty and stepped down after paying a $4 billion bond for Anti-Money Laundering violations and operating an unregistered securities business. This follows the conclusion of the FTX case, which resulted in the arrest and conviction of FTX’s founder and CEO Sam Bankman-Fried.
Regulatory Battleground in the Philippines
The Philippines has become a battleground for regulatory agencies and the crypto sector. Earlier this year, the PSEC classified Gemini Derivatives as a form of security and advised users against investing in it. Traders and investors in the country should closely monitor further developments regarding cryptocurrency adoption.
Hot Take: Philippine SEC Issues Warning Against Binance’s Unauthorized Activities
The Philippine Securities and Exchange Commission (PSEC) has issued a warning against Binance, stating that it is not registered under the country’s regulatory framework and lacks authorization to deal in securities. The PSEC has sought assistance from the National Telecommunications Commission to block access to the exchange. Binance is required to register with the PSEC, comply with due diligence procedures, and provide information on securities before obtaining a license. The commission also highlighted potential criminal liability for individuals promoting Binance’s platform within the Philippines. This warning adds to Binance’s ongoing legal troubles, including its founder’s recent guilty plea and resignation. The Philippines continues to be a key battleground for regulatory agencies and the crypto industry.
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