Potential Departure for Binance in the Philippines: Understanding the Timeline

Crypto News- In a recent development, the Philippine Securities and Exchange Commission (SEC) has provided clarity on the timeline for the imminent ban on Binance, alongside other unregulated crypto exchanges. During a panel discussion, SEC Commissioner Kelvin Lee shared insights into the evolving regulatory landscape in the Philippines, signaling the growing attention of global regulators on the crypto industry.

Commissioner Lee emphasized that the ban on Binance would take effect three months from the advisory’s issuance date, which was November 29. Notably, he acknowledged the potential for an extension based on feedback, highlighting the extended duration to alleviate hardships for Filipino investors during the Christmas season.

Potential Departure for Binance in the Philippines: Understanding the Timeline

It’s worth noting that the initial recommendation on Commissioner Lee’s desk was only one month, showcasing a flexible approach to the evolving situation. In response to criticism that Binance, despite being cost-effective, should not face a ban, Lee explained that the exchange’s affordability arises from its failure to register and comply with Philippine regulations.

Lee underscored the SEC’s mandate to caution investors against unregistered exchanges, emphasizing the accountability and compliance costs associated with registered entities. Looking ahead, he provided insights into upcoming crypto regulations, mentioning a shift from public consultation to a select group of experts reviewing the draft framework.

Despite a draft primarily focused on the SEC, Lee expressed confidence in addressing overlaps with other regulators through additional implementing rules and regulations. The commissioner stressed the importance of investing in registered entities, promoting consumer protection, and encouraging collaboration with the growing number of virtual asset service providers (VASPs) in the country.

These regulatory developments mirror the SEC’s commitment to educating and safeguarding Filipino investors in the ever-changing crypto landscape. For context, the SEC’s findings suggested Binance’s involvement in the unlawful offering of securities within the country on November 29. According to Philippine regulations, securities and their issuance prices must be registered with the SEC, applying to both corporations and licensed dealers in the Philippines.

These challenges for Binance come in the wake of the US Department of Justice (DoJ) filing a lawsuit against the platform for money laundering charges, with Binance CEO CZ pleading guilty in response.