- The SEC in the Philippines said Binance is not authorized to operate in the country.
- The regulator stated that the crypto exchange has violated securities regulations through its operations in the country.
- Binance operators and dealers in the Philippines risk criminal convictions in light of their operations.
The Securities and Exchange Commission in the Philippines announced on Tuesday that the world’s largest cryptocurrency exchange, Binance, is not authorized to operate in the country. The regulator made the disclosure in a blog post where it noted that the crypto exchange has a considerable presence in the country. Based on the report, Binance allegedly used various social media promotional efforts to draw Filipino users to its platform.
Furthermore, the SEC said that information on the exchange’s website shows that it runs a facility to trade financial instruments and offers investment products. However, the regulator said these services or products must be registered under the law before they can be issued or sold to the public.
According to the report, the issuer or the broker offering the services or products must also be registered in the Philippines. “Based on the Commission’s database, the operator of the platform BINANCE is NOT REGISTERED as a corporation in the Philippines and OPERATES WITHOUT THE NECESSARY LICENSE AND/OR AUTHORITY to sell or offer any form of securities,” the regulator wrote.
While asking the public to avoid unregistered trading firms, the regulator reiterated its commitment to dealing with the platforms. Importantly, the SEC said Binance operators and dealers risk criminal conviction under the law. Furthermore, penalties could include a 5 million peso fine, 21 years of imprisonment, or both.
The latest development follows a slew of regulatory step-ups against the crypto firm in various jurisdictions. While Binance is fully registered in some countries, other jurisdictions, like Nigeria, have asked the platform to cease operations until it is regulatory compliant.
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