The Securities and Exchange Commission (SEC) announced its decision to formally request that the National Telecommunications Commission (NTC) restrict access to the services of Binance. This move underscores the SEC’s ongoing concerns regarding Binance’s operations within the country, particularly given that the exchange has not yet obtained the necessary license to operate from the commission.
In November 2023, the SEC had issued a warning to investors, cautioning them about the risks of using Binance’s platform due to its unlicensed status. The commission’s chairperson, Emilio Aquino, in a communication dated March 12 addressed to the NTC, expressed that the presence of Binance in the Philippines represents a potential risk to the financial security of Filipino investors.
While the SEC’s recent statement did not specify an exact date for the proposed ban to commence, historical context indicates that the commission had previously mentioned its intention to enact the block on the app within three (3) months following the issuance of an advisory.
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Binance is recognized as the largest cryptocurrency trading platform globally, boasting an average daily trading volume of approximately $65 billion and supporting over 400 different cryptocurrencies. The exchange’s user base is extensive, with its website claiming over 183 million registered users around the world.
In response to regulatory pressures, the SEC allowed investors ample time during 2023 to withdraw their investments from Binance. Additionally, the SEC highlighted that individuals aiding the operation of the app could face criminal charges, potentially incurring penalties up to Php5 million or imprisonment for a term reaching 21 years.
Binance has previously stated its commitment to working in harmony with local regulatory bodies and has taken measures to address the concerns raised by the SEC. But with these recent developments, it looks like Binance didn’t pursue complying with the regulatory requirements in the Philippines.