The Philippine Government’s Security and Exchange Commission (SEC) has announced a block on Filipino users from Binance, the world’s leading cryptocurrency exchange. They argue that Binance is operating without a license in their country and trading unauthorized securities.
According to SEC, Binance uses its website and mobile apps to attract investments from Philippine customers. It allows them to buy, swap, or dispose of various digital resources. These digital items, based on the laws of the Philippines, are considered securities. It demands proper registration and disclosure with the SEC.
Therefore, the SEC warned about possible legal issues for those backing Binance in the Philippines. They stated that folks acting as agents, scouts, promoters, or aides of the platform might face criminal accusations under the Securities Regulation Code. It could result in penalties like a maximum fine of Five Million Pesos (P 5,000,000.00) or prison time of up to Twenty-One (21) years.
SEC Calls For Cooperative Aid
Also, the SEC has called on two agencies – the National Telecommunication Commission and the Department of Information, to restrict entry to Binance’s site and apps within the country, and the SEC urged major tech firms such as Google and Meta to prevent Binance ads from reaching users in the Philippines.
Binance, a cryptocurrency company, bumped into hurdles, not only in the Philippines but globally. They formerly agreed with U.S. officials to pay substantial penalties. It occurred because of numerous violations like neglecting robust anti-money laundering measures and operating a company without the mandatory money-transmitting license.
Similarly, Binance ran into legal issues in Europe and other regions, leading them to pull back from a number of locations where they didn’t have the necessary permits or ignored local laws.
Binance, presently under the guidance of a new leader, is committed to abiding by local regulations. To address SEC concerns, Binance initiated some proactive measures. The platform is set to adapt to forthcoming legislation like the Markets in Crypto Assets (MiCA) in the European Union. It intends to secure licenses in participating countries, facilitating operations throughout the union.
Despite Binance’s efforts to comply with local laws, they continue to experience more attention from regulatory authorities across the globe. It creates challenges for this international cryptocurrency trading platform.
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