After encountering regulatory obstacles in the Philippines, Binance, the prominent cryptocurrency exchange, navigates through a turbulent phase as users hasten to sell off their assets at marked-down prices.
Concurrently, the Securities and Exchange Commission (SEC) of the Philippines’ recent prohibition has sparked heightened activity among Binance investors, with observations of noteworthy reductions in USDT values and apprehensions regarding excessive on-chain transaction fees.
In recent days, Binance, the prominent cryptocurrency exchange, has encountered a series of regulatory challenges, with the latest being the proposal of a ban by the Philippines SEC. Additionally, CoinGape Media previously reported on a setback the exchange faced in Nigeria.
Users rushed to withdraw money from the site following the SEC’s proposal. They fear more restrictions and uncertainty around Binance in the Philippines. The ban makes Investors rush to sell their investments at lower prices. Binance couldn’t get a license in the country.
Legal Director Questions Binance Ban In the Philippines
DL News has relayed insights from Luis Buenaventura, an assistant vice president at GCash and co-founder of the crypto exchange platform BloomX. Buenaventura notes that vendors sell USDT at discounted prices to offload their inventories amidst regulatory pressures. Furthermore, users face significant on-chain transaction fees, with some transactions incur fees surpassing $12. These challenges are intensifying the current sell-off frenzy.
The regulatory actions taken in the Philippines have raised doubts about Binance’s prospects, leaving users uncertain about the platform’s accessibility and legality. Despite prior warnings from the SEC since November, the sudden imposition of the ban has surprised many users, leading to confusion and frustration among the crypto community.
At Farcove Consulting in Manila, Rafael Padilla, the legal director, voiced apprehensions regarding the legality and equity of the decision to block Binance’s website while permitting local exchanges to continue operating without restrictions. Padilla underscored the necessity for transparency and legal avenues, proposing that contesting the SEC’s ruling in court could ultimately dictate the platform’s fate within the Philippines.
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