April 19, 2024
Binance Faces SEC Warning
Latest Cryptocurrency News

Philippines SEC Warns of Potential Binance Blockage Over Licensing Issues

The Philippines Securities and Exchange Commission (SEC) has issued a stern warning, signaling the potential blockage of Binance’s operations within the country. This move comes as Binance operates without the necessary license in the Philippines, prompting the SEC to caution users.

The SEC highlighted Binance’s unauthorized sale of securities and its active promotion of cryptocurrency trading via social media channels targeted at Filipinos, flagging this as an offense with potential criminal liabilities for those involved in promoting Binance services in the Philippines.

In its notice, the SEC explicitly mentioned that individuals acting as promoters, recruiters, influencers, or endorsers for Binance, convincing people to invest in the platform, could face legal repercussions. These individuals could be held criminally liable under Section 28 of the Securities Regulation Code, with the threat of fines amounting to 5 million Philippine Pesos ($90,000) and imprisonment for up to 21 years.

Additionally, the regulator has sought cooperation from the National Telecommunications Commission to facilitate the blockage of Binance within the country. Moreover, it has directed major tech players like Google and Meta to cease displaying local ads related to Binance. If approved, this block is slated to take effect within three months, allowing local users a grace period to liquidate and withdraw their assets from the platform.

In response to queries from local media outlets, Binance expressed its commitment to aligning with applicable local regulations. The exchange highlighted proactive steps taken under new leadership to address the concerns raised by the SEC.

Importantly, this warning follows Binance’s recent settlement with U.S. authorities, wherein the exchange agreed to pay a substantial $4.3 billion in fines. The charges included allegations of failure to maintain an adequate anti-money laundering program, operating an unlicensed money-transmitting business, and breaching sanctions laws.

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