April 19, 2024
Philippines Set to Block Access to Binance Exchange
Policy & Regulation

Philippines Set to Block Access to Binance Exchange

The SEC of the Philippines has announced plans to block local user access to Binance, the world’s largest cryptocurrency exchange, citing concerns over the firm’s unlicensed operations within the country.

This move adds to the growing regulatory challenges faced by Binance on a global scale.

SEC’s Decision and Collaboration with NTC

In a document dated March 25, the SEC revealed its decision to block access to Binance’s website and online trading platform in collaboration with the National Telecommunication Commission (NTC).

SEC Chairperson Emilio B. Aquino emphasized the threat posed to the security of Filipino investors’ funds due to continued access to Binance’s platforms without necessary licenses.

The SEC alleges that Binance offers investment products, including leveraged trading services and crypto savings accounts, without the required licenses, violating the Securities Regulation Code.

This regulatory breach prompted the decision to restrict access to Binance within the Philippines.

Ban Implementation and Exit Strategy for Investors

The ban is set to take effect within three months, allowing investors time to exit their positions held through Binance. Additionally, the SEC has requested Google and Meta to block Binance-related advertisements targeted at Filipino users on their platforms.

This regulatory action in the Philippines adds to a series of challenges faced by Binance globally. In December, a U.S. court ordered Binance to pay significant fines, alongside former CEO Changpeng “CZ” Zhao, in connection with violations related to operating an illegal derivatives exchange.

CZ’s Legal Issues and Pending Sentencing

Changpeng Zhao, commonly known as CZ, stepped down from his role as CEO of Binance in November as part of a settlement with the U.S. Department of Justice, the Treasury Department, and the Commodity Futures Trading Commission (CFTC).

CZ pleaded guilty to civil and criminal charges related to Anti-Money Laundering laws, with his sentencing postponed until April 30.

Conclusion

The Philippines’ decision to block access to Binance underscores the increasing regulatory scrutiny faced by cryptocurrency exchanges worldwide.

As Binance navigates these challenges, including legal settlements and leadership changes, the broader implications for the cryptocurrency industry remain uncertain.

Image: needpix

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