The Securities and Exchange Commission (SEC) of the Philippines has released an advisory against Binance, a popular cryptocurrency exchange platform.
Released on November 28, 2023, through its official website, the SEC said that Binance is “not authorized to sell or offer securities to the public in the Philippines.”
The advisory was made after the commission received reports and information that the platform “have been actively employing promotional campaigns” on different social media platforms to “attract and entice” Filipinos in investing on its platforms.
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SEC has detailed how Binance operates and that it can be easily accessible through its website and mobile apps.
The commission highlighted that, while they appear to be registered overseas, they should follow the requirements of the Securities and Regulation Code (SRC) in the Philippines before they can offer securities and investments locally.
It is stipulated in the SRC that:
- The securities being offered are registered with the Philippine Securities and Exchange Commission (SEC). This involves filing an application for registration and providing detailed information about the securities, including the issuance price, the use of proceeds, and the nature of the securities;
- that the securities must be issued by a corporation or a licensed dealer, both of which should be registered in the Philippines; and
- that the issuer possesses a secondary license to sell or offer securities to the public.
SEC said that their database reveal that the operator of Binance is “NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY” to offer or sell any type of securities as defined under Section 3.1 of the Securities Regulation Code, and “to engage in the business of buying or selling securities or as a broker or dealer as provided under Section 28 of the SRC, or to create or operate an exchange for the buying and selling of securities as provided under Section 32 of the SRC.”
With that, the SEC is advising the public to be cautious in investing with “these kinds of unregistered online investment platforms.”
SEC added that those who act as brokers, salesmen, dealers or agents, promoters, representatives, recruiters, endorsers, influencers, and enablers of Binance in the Philippines through online means can be fined a maximum amount of Php5 million or 21 years of imprisonment or both in pursuance of the SRC.
Binance recently made the headlines after its founder stepped down as CEO after the U.S. government found them guilty of anti-money laundering violations.