The Philippines SEC Warns Against Binance
The Philippines Securities and Exchange Commission (SEC) has issued a warning to the public regarding Binance, stating that the cryptocurrency exchange is not registered in the country and does not possess the necessary license or authority to operate. The SEC emphasized that Binance has been actively promoting its platform on social media platforms to attract Filipino investors and traders, which is unauthorized without the required licenses. Individuals found promoting Binance within the Philippines may face criminal liability under the Securities Regulation Code, potentially resulting in a maximum fine of five million pesos or imprisonment of 21 years.
A spokesperson from Binance acknowledged and respected the statement made by the SEC, assuring that the exchange is committed to aligning with local regulations. Under new leadership, Binance has taken proactive steps to address the concerns raised by the SEC.
It is worth noting that Kenneth Stern, the former general manager of Binance in the Philippines, left his position earlier this month. However, according to a Binance spokesperson, Stern departed in July, prior to the SEC’s warning.
Binance Under New Leadership
Binance, recognized as the world’s largest cryptocurrency exchange, is now led by Richard Teng, a former civil servant. Last week, both Binance and its founder Changpeng Zhao pleaded guilty to U.S. anti-money laundering and sanctions violations. As part of his guilty plea agreement with the Department of Justice, Zhao resigned as CEO. The settlement requires Binance to pay $4.3 billion in penalties, one of the largest in U.S. history, while Zhao will face a $50 million fine and potentially up to 10 years in jail (expected to be reduced to 18 months under a plea deal). Teng has expressed a commitment to collaborating with regulators globally to ensure compliance with high standards while fostering innovation and user safety.
Hot Take: Binance Faces Regulatory Challenges
Binance, the world’s leading cryptocurrency exchange, is facing regulatory challenges in the Philippines. The country’s SEC has warned that Binance operates without the necessary license or authority, putting individuals promoting the platform at risk of criminal liability. In response, Binance has emphasized its commitment to aligning with local regulations under new leadership.
Furthermore, Binance recently pleaded guilty to U.S. anti-money laundering and sanctions violations, resulting in significant penalties and the resignation of its founder as CEO. With Richard Teng now at the helm, Binance aims to collaborate with regulators worldwide while ensuring user safety and fostering innovation.
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