Public policy thinktank Infrawatch PH has formally sent a letter to the Bangko Sentral ng Pilipinas (BSP) to “suspend and ban” Binance, one of the most popular platforms for cryptocurrency exchange.
Infrawatch PH cites Binance‘s lack of a Virtual Asset Services Provider (VASP) license during its operation.
As per the BSP’s website, Binance doesn’t hold a Virtual Asset Service Provider (VASP) license. VASP is given to companies and entities who want to enter the business of transferring and exchanging virtual assets.
However, back in June, Binance already said that they are seeking partnerships with Philippine payment service providers and banks, as well as to obtain VASP.
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In its letter, Infrawatch PH is asking the central bank’s “immediate attention to this very pressing matter for your appropriate action, in according with existing laws and regulations in the Philippines.”
Infrawatch is asking BSP to do three actions: examine Binance’s operations in the Philippines, suspend the exchange after hearing and notice, and “reject any future application of Binance as VASP after it operates without one.” You can read the full letter above.
I smell a very foul anti-competitive practices by local cryto
currency trading platforms here in Pinas (we already know who
those two are). Its kinda obvious, since they are so suck up to
KYC policy, as compared to Binance where the privacy of
customers and cyrpto investors are less exposed.
The two operating here in the Pinas, specially the one with a
newly appointed Owner / CEO where a customer deposited just
as small as 4K USD or something in the amount range, they
will suspend your account for a while and subject the account
holder for a KYC video one on one calling and ask very very
serious and very private questions regarding your life and
financial matters, IT’S LIKE EXPOSING ALL MATTERS REGARDING
YOUR WHOLE FINANCIAL SAVINGS to a bunch of people you
barely even know, THAT EVEN THE STRICTEST BANKS here in
Pinas wont even dare to ask questions like those they do in
the KYC. Imagine that,.. just for around 150K to 200K Php they
will subject you and investigate your whole financial related
life and after asking questions you’ll feel like you dont have
any privacy left (just for a small amount of crypto assets you
avail or deposited), AND YET they DREAM OF EARNING A LOT
OF MONEY for trade percentages being done in their platform
which im sure now it wont gonna happen specially now that
they are about to have a tough competition with Binance.
Those two local trading platforms didn’t realize the negative
impact of KYC by setting their practices too strict that a lot of
bigtime crypto traders already knew and wont even signup in
their trading platforms because of it. Its like doing a power
trip on your financial background for a very small amount of
crypto asset that you invested. Im not against those two local
trading platforms but im not very agreeable with their policies
and a lot of people do as well (not just me), that is why majority
of Pinoy cryto investors and specially those big time traders
who trades and earns millions of php a day still favors offshore
crypto trading platforms as compared to those two operating
here in Pinas, Im sure the new CHINESE CEO of one of the trading
platforms here would continue their poor KYC practices or should
i say “power trip too strict policy”, they wont generate a lot of
revenue from their platform like Binance did and continues to
do until now.
To those Pinoy’s who are planning to invest or trade in Crypto
currency in LARGE VOLUMES (130K php and HIGHER) and values
your privacy without exposing much of all your financial related
life by investing a small amount only to find out your account is
being suspended for the reason of KYC. You’re are better off with
those popular offshore crypto trading platforms like Binance and
others where KYC is much less strict and values customers privacy.