Crypto exchange Binance has been operating in the Philippines without securing the necessary license or approval, as reported by the country’s securities regulator.
On Nov. 28, The Philippines Securities and Exchange Commission (SEC) released a warning about Binance, notifying the public that the exchange lacks authorization to sell or offer securities within the country.
The statement highlighted that a platform such as Binance is required to register and furnish comprehensive details about the securities it offers prior to making them available to the public. Such detailed information includes the issuance price, the nature of securities, and other data.
The SEC also accused Binance of illicitly promoting its services in the country. Entities involved in promoting or trading on Binance may face criminal liability under Section 28 of the SRC. This offense carries a penalty of up to 5 million Philippine pesos (approximately $90,300), imprisonment of up to 21 years, or both, as per Section 73 of the SRC.
Despite receiving several warnings, Binance continues to be a prominent cryptocurrency trading platform in the Philippines, with some users praising the dependability and steadiness of its services in the region on social media three months ago.
Reports indicate that the SEC plans to restrict access to Binance’s website and applications in the Philippines in the next three months, enabling local users to liquidate and withdraw their positions.
Furthermore, the SEC has reportedly requested Google and Meta to ban Binance’s online advertisements in the country.
Kenneth Stern, the former general manager of Binance in the Philippines, left the exchange this month, as indicated by his LinkedIn profile.
Local media in the Philippines published a response from Binance, where the exchange said it was “committed to aligning with applicable local regulations. Under our new leadership, we have taken proactive steps to address the SEC’s concerns.”
This situation follows Binance’s recent settlement with U.S. authorities, where the exchange agreed to pay $4.3 billion in fines for failing to maintain an adequate anti-money laundering program, operating an unlicensed money-transmitting business, and violating sanctions law.