The Philippines’ Securities and Exchange Commission (SEC) is coordinating with the country’s National Telecommunication Commission (NTC) to disrupt Binance’s online trading platform and website.
Binance is the top cryptocurrency exchange in the world, but the Philippines’ financial authority is worried about the company’s illegal activities in the country and has announced steps to limit access to it.
This move is in reaction to the platform’s violation of the Securities Regulation Code by offering investment services including crypto savings accounts and leveraged trading without the appropriate licenses.
The Philippines’ Securities and Exchange Commission (SEC) is working with the country’s National Telecommunication Commission (NTC) to put an end to Binance’s online trading platform and website.
In a statement made by SEC Chairperson Emilio B. Aquino, the danger to the safety of Filipino investors’ money could result from unfettered access to these platforms. “The SEC discovered the platforms in question and concluded that the public’s ongoing access to these websites/apps poses a threat to the security of the funds of investing Filipinos.”
Investors will have enough time to terminate their holdings with Binance since the prohibition will be phased in over three months to minimize immediate problems.
The SEC has also taken action by contacting Google and Meta in an effort to block ads for Binance from reaching users in the Philippines.
Legal action in the Philippines against Binance is only the latest in a long line of regulatory hurdles that the exchange has faced throughout the world.
The CFTC sued Binance in December 2023, and a U.S. court penalized the company $2.7 billion and former CEO Changpeng “CZ” Zhao $150 million.
Initiated in March 2023, this legal dispute alleged that Binance had violated U.S. law by running an unauthorized futures exchange.
Consequences for CZ have been substantial; in November, he agreed to step down as Binance’s CEO as part of a larger deal with several US regulatory agencies, including the DOJ and the CFTC.
In addition, CZ confessed to a criminal charge involving breaches of Anti-Money Laundering regulations as well as other civil crimes.
A $175 million release bond is in place for CZ as he awaits sentencing on money laundering charges, which is now set on April 30.
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