Home Altcoins News Philippines SEC Issues Warning to Cryptocurrency Giant Binance for Unlicensed Operations

Philippines SEC Issues Warning to Cryptocurrency Giant Binance for Unlicensed Operations

SEC

In a significant development in the cryptocurrency world, the Philippines Securities and Exchange Commission (SEC) has issued a strong cautionary note against Binance, a leading global cryptocurrency exchange. The SEC’s announcement on November 28, 2023, highlights concerns over Binance’s lack of necessary licenses or approvals to operate within the Philippines, potentially raising legal implications for its users.

Unauthorized Operations and Promotion:

The Philippines SEC emphasized that Binance, a major player in the global cryptocurrency market, lacks authorization to sell or offer securities within the country. Under the Philippines’ Securities Regulation Code (SRC), any entity wishing to offer securities must register and provide detailed information about these securities, including their nature and issuance price.

However, Binance falls short in meeting these requirements, as it is not registered as a corporation in the Philippines and lacks the essential licenses to offer securities, as defined by the SRC. Furthermore, the SEC accused Binance of unlawfully promoting its services within the Philippines. It cautioned that individuals or entities involved in promoting or trading on Binance’s platform may face severe criminal liability under Section 28 of the SRC.

Potential penalties for this offense include fines of up to 5 million Philippine pesos (approximately $90,300) and imprisonment for up to 21 years, or both, as specified in Section 73 of the SRC.

Ongoing Legal Challenges:

Despite repeated warnings from authorities, Binance has maintained a significant presence in the Philippines’ cryptocurrency trading arena. Users have lauded its services as “reliable and stable” on various social media platforms. Nevertheless, the recent actions by the Philippines SEC are not isolated incidents.

Binance has encountered legal challenges in several jurisdictions, including the United States. Recently, Binance’s CEO, Changpeng Zhao, admitted guilt in a U.S. court for violating U.S. Anti-Money Laundering laws and stepped down from the CEO position. This development adds to the mounting concerns surrounding the exchange’s global operations.

Implications for Binance in the Philippines:

The Philippines SEC’s warning raises questions about the future of Binance’s operations in the country. With the SEC asserting that Binance lacks essential licenses and authorization to offer securities, the exchange may face further regulatory actions that could significantly disrupt its activities.

Experts suggest that the Philippines SEC’s actions might parallel those of the United States SEC. Binance is currently embroiled in legal proceedings initiated by the U.S. SEC, and an adverse outcome in that case could have widespread repercussions for Binance’s global operations, including those in the Philippines.

The Philippines has witnessed a surge in interest in cryptocurrency trading, with various local and international exchanges catering to the market. However, the evolving regulatory landscape highlights the importance of complying with local regulations.

Cryptocurrency traders and investors in the Philippines are urged to exercise caution and choose platforms that comply with necessary regulatory requirements. The Philippines SEC recommends using exchanges regulated by the Bangko Sentral ng Pilipinas (BSP), such as PDax and Coins.ph, to avoid potential legal entanglements.

September 2023 saw the Philippines SEC partnering with the U.S. SEC to jointly combat cryptocurrency fraud. This collaboration underscores the global nature of the cryptocurrency industry and the necessity for coordinated efforts among regulators to maintain financial market integrity.

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Julie J

Julie is a renowned crypto journalist with a passion for uncovering the latest trends in blockchain and cryptocurrency. With over a decade of experience, she has become a trusted voice in the industry, providing insightful analysis and in-depth reporting on groundbreaking developments. Julie's work has been featured in leading publications, solidifying her reputation as a leading expert in the field.

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