The Securities and Exchange Commission (SEC) of the Philippines has blocked the cryptocurrency giant Binance. This action was taken after the exchange was found to be operating an investment and trading platform without the necessary license, raising concerns about the security of investors' funds.
The commission approved the filing of a formal request with the National Telecommunications Commission (NTC) to block the exchange's website and other associated web pages in a meeting held on March 12.
In the letter addressed to the NTC, the SEC’s Chairperson, Emilio Aquino, mentioned: "The SEC has identified the aforementioned platform and concluded that the public’s continued access to these websites or apps poses a threat to the security of the funds of investing Filipinos."
Promotional Activities
According to the Philippines' securities watchdog, Binance has not obtained the required license from the SEC despite defining itself as a trading facility offering various investment products, including spot trading, futures contracts, and cryptocurrency savings accounts. This contravenes the country's regulations, which mandate licenses for soliciting investments from the public and operating securities exchanges.
The SEC noted that Binance has an average daily trading volume of $65 billion across more than 402 cryptocurrencies, with a membership of over 183 million users. The platform has actively used promotional campaigns on social media to entice Filipinos into investment and trading activities.
Binance Faces Regulatory Hurdles Globally
In November last year, the SEC warned the public against investing in Binance. The agency has been collaborating with the NTC to block websites that illegally offer investments in the Philippines. Earlier actions included blocking websites and apps on other platforms like OctaFX and MiTrade, highlighting the regulator's commitment to protecting the investing public.
Notably, the SEC has assured investors adequate time to exit the platform and transition their portfolios to authorized investment products and platforms.
The enforcement action against Binance added to the exchange's growing list of regulatory challenges worldwide. From France to Nigeria, Binance has faced increased scrutiny and regulatory pressure over its operations. Notably, Nigeria's Securities and Exchange Commission has highlighted similar concerns regarding the solicitation of Nigerian citizens for crypto trading activities by Binance.
Additionally, Binance's operations in the United States faced intense scrutiny, leading to significant legal battles and multi-billion-dollar settlements. The exchange officially exited the US market, and its Former CEO, Changpeng Zhao, stepped down from his role.
This article was written by Jared Kirui at www.financemagnates.com.
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