The Philippines' securities regulator has taken enforcement action against Binance, ordering Google and Apple to remove their apps from their respective app stores. This action follows allegations that Binance offered unregistered securities to Filipino investors.
Philippines' SEC Targets Binance's Apps
The Philippines' Securities and Exchange Commission (SEC), through its Chairperson, Emilio Aquino, highlighted the threat posed to the security of investors' funds by continued access to Binance's sites and apps.
The regulator alleged that Binance's presence in the app stores facilitates the spread of its illegal activities in the country. This action is a response to findings that the exchange promoted its services to attract funds from Filipinos despite lacking the necessary licensing from the regulator.
????PHILIPPINES SEC GOES TO WAR AGAINST BINANCE????Blocking Binance will “prevent the further proliferation of its illegal activities in the country”- According to a post on the regulator’s official website, The Philippines version of the SEC is actively working with… https://t.co/kDCxReyoZ7 pic.twitter.com/IooxO752Jv
— BSCN (@BSCNews) April 23, 2024
The latest enforcement action in the Philippines adds to Binance's mounting legal challenges, including the recent replacement of its CEO and a hefty fine imposed by the US government against the exchange for alleged violation of anti-money laundering regulations.
Changpeng Zhao, the former CEO of Binance, awaits sentencing on charges related to violating the Bank Secrecy Act. Furthermore, the exchange is entangled in legal battles with both the US Securities and Exchange Commission and the Commodity Futures Trading Commission over purported mishandling of customer assets.
The Philippines' SEC has advised investors holding assets in Binance to promptly close their positions or transfer them to registered exchanges or wallets within the country.
Binance Grapples with Legal Hurdles
Last month, the Philippines' SEC blocked Binance's operations as an investment and trading platform due to claims that the exchange lacked the required license. According to the watchdog, Binance has continued its activities despite warnings issued since November 2023.
In a meeting held on March 12, the SEC formally requested the National Telecommunications Commission to block Binance's website and associated web pages. Aquino emphasized the threat posed to Filipino investors' funds by allowing continued access to the platform.
Binance's failure to secure the necessary license from the SEC contradicts the Philippines' regulations, which mandate companies secure approvals before soliciting investments and operating securities exchanges. Additionally, the exchange's extensive social media promotional campaigns targeting Filipino investors have raised concerns about compliance and investor protection.
This article was written by Jared Kirui at www.financemagnates.com.
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