The Philippine Securities and Exchange Commission (SEC) bared its plan to have Binance, the world’s largest crypto trading platform blocked in the country.
This, according to the commission, is to protect the public from unregistered investment products.
SEC Moves to Block Binance
Why is the SEC looking to block access to Binance in the country?
The commission revealed that the crypto trading platform is unauthorized to sell or offer securities to the public, pursuant to Republic Act No.8799 or the Securities Regulation Code (SRC).
Under the law, entities looking to engage in the business of buying or selling securities or as broker-dealers are required to secure a secondary license with the SEC.
The SEC also found that Binance has been actively promoting on social media to attract Filipinos to engage in investment and trading activities on its platform. Because of this, the regulators asked Google and Meta to ban online advertisements of the crypto trading platform to users in the Philippines.
Additionally, the SEC is working with the National Telecommunications Commission (NTC) and the Department of Information and Communications Technology (DICT) to block access to the platform in the country.
When asked about the statement from the SEC, Binance said, “We acknowledge and respect the statement made by the Securities and Exchange Commission of the Philippines. At Binance, we are committed to aligning with applicable local regulations. Under our new leadership, we have taken proactive steps to address the SEC’s concerns.”
Trouble Brewing at Binance?
The SEC decision comes after the crypto trading platform’s former CEO Changpeng Zhao stepped down and pleaded guilty in the US to breaking anti-money laundering laws. Zhao paid USD 50 million personally for the settlement.
Because of this, the company appointed a new CEO, Richard Teng. He now faces an uphill battle with US financial monitoring, an ongoing US SEC lawsuit, and now the Philippine SEC pushing to block the platform.
What happens next?
According to the SEC, the removal of access in the Philippines is expected to take effect within three months. This will give Filipino investors with holdings in Binance to close their positions and take out their investments.
We’ll definitely have to wait for the next chapter in this story, especially with the platform ‘committed to aligning with local regulations’.
Ram found his love and appreciation for writing in 2015 having started in the gaming and esports sphere for GG Network. He would then transition to focus more on the world of tech which has also began his journey into learning more about this world. That said though, he still has the mentality of "as long as it works" for his personal gadgets.