Crypto News- The Philippines Securities and Exchange Commission (SEC) has issued a warning that cryptocurrency exchange Binance is operating in the country without the necessary approval or license. The advisory, released on Nov. 28, stressed that Binance is not authorized to sell or offer securities in the Philippines.
Binance Operates in the Philippines Without a License, According to Regulator
According to the announcement, the SEC highlighted the requirement for exchanges like Binance to undergo registration and provide comprehensive information about the securities they offer before making them available to the public. This detailed information includes the issuance price, nature of securities, and other pertinent data.
Under the Philippines’ Securities Regulation Code (SRC), securities issuers must be registered in the country before making them available for investment. The issuer is also required to obtain a secondary license to sell or offer securities to the public. The SEC’s statement revealed that, based on its database, Binance is not registered as a corporation in the Philippines and is operating without the necessary license or authority to sell or offer any form of securities, as defined under Section 3.1 of the SRC.
In addition to lacking the required license, the SEC accused Binance of unlawfully promoting its services in the country. The regulator warned that 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 ($90,300), imprisonment for 21 years, or both, as per Section 73 of the SRC.
Despite prior warnings, Binance has maintained its position as a major cryptocurrency trading platform in the Philippines, with some users praising its local services as “reliable and stable” on social media a few months ago. A Reddit commentator noted the likelihood of Philippine authorities following regulatory decisions by the U.S. SEC concerning Binance’s legal status, stating:
“Binance is currently being sued by the U.S. SEC. If it loses in that case, every Binance operation in most countries, including the Philippines, would crumble like a house of cards. So if I were you trade on BSP-regulated exchanges like PDax and Coins.ph.”
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