The Securities and Exchange Commission (SEC) of the
Philippines has blocked the cryptocurrency giant Binance. This action was taken
after the exchange was found to be operating an investment and trading platform
without the necessary license from the SEC, raising concerns about the security
of investors’ funds.
The commission approved the filing of a formal request with
the National Telecommunications Commission (NTC) to block the exchange’s
website and other associated web pages in a meeting held on March 12.
In the letter addressed to the NTC, the SEC’s Chairperson, Emilio Aquino, mentioned: “The SEC has identified the
aforementioned platform and concluded that the public’s continued
access to these
websites or apps poses a
threat to the security
of the funds
of investing Filipinos.”
According to the Philippines’ securities watchdog, Binance has
not obtained the required license from the SEC despite defining itself as a
trading facility offering various investment products, including spot trading,
futures contracts, and cryptocurrency savings accounts. This contravenes the
country’s regulations, which mandate licenses for soliciting investments from
the public and operating securities exchanges.
Source: SEC Philippines
The SEC noted that Binance has an average daily trading
volume of $65 billion across over 402 cryptocurrencies , with a membership of
over 183 million users. The platform has actively used promotional campaigns on
social media to entice Filipinos into investment and trading activities.
Binance Faces Regulatory Hurdles Globally
In November last year, the SEC warned the public against
investing in Binance. The agency has been collaborating with the NTC to block
websites that illegally offer investments in the Philippines. Earlier actions
included blocking websites and apps on other platforms like OctaFX and MiTrade,
emphasizing the regulator’s commitment to protecting the investing public.
Notably, the SEC has assured investors adequate
time to exit the platform and transition their portfolios to authorized
investment products and platforms.
The enforcement action against Binance adds to the exchange ‘s growing list of regulatory challenges worldwide. From France to Nigeria, Binance has faced increased scrutiny and regulatory pressure over its operations. Notably, Nigeria’s Securities and Exchange Commission has highlighted similar concerns regarding the solicitation of Nigerian citizens for crypto trading activities by Binance.
Additionally, Binance’s operations in the United States faced intense scrutiny, leading to significant legal battles and multi-billion-dollar settlements. The exchange officially exited the US market, and its Former CEO, Changpeng Zhao, stepped down from his role.
The Securities and Exchange Commission (SEC) of the
Philippines has blocked the cryptocurrency giant Binance. This action was taken
after the exchange was found to be operating an investment and trading platform
without the necessary license from the SEC, raising concerns about the security
of investors’ funds.
The commission approved the filing of a formal request with
the National Telecommunications Commission (NTC) to block the exchange’s
website and other associated web pages in a meeting held on March 12.
In the letter addressed to the NTC, the SEC’s Chairperson, Emilio Aquino, mentioned: “The SEC has identified the
aforementioned platform and concluded that the public’s continued
access to these
websites or apps poses a
threat to the security
of the funds
of investing Filipinos.”
According to the Philippines’ securities watchdog, Binance has
not obtained the required license from the SEC despite defining itself as a
trading facility offering various investment products, including spot trading,
futures contracts, and cryptocurrency savings accounts. This contravenes the
country’s regulations, which mandate licenses for soliciting investments from
the public and operating securities exchanges.
Source: SEC Philippines
The SEC noted that Binance has an average daily trading
volume of $65 billion across over 402 cryptocurrencies , with a membership of
over 183 million users. The platform has actively used promotional campaigns on
social media to entice Filipinos into investment and trading activities.
Binance Faces Regulatory Hurdles Globally
In November last year, the SEC warned the public against
investing in Binance. The agency has been collaborating with the NTC to block
websites that illegally offer investments in the Philippines. Earlier actions
included blocking websites and apps on other platforms like OctaFX and MiTrade,
emphasizing the regulator’s commitment to protecting the investing public.
Notably, the SEC has assured investors adequate
time to exit the platform and transition their portfolios to authorized
investment products and platforms.
The enforcement action against Binance adds to the exchange ‘s growing list of regulatory challenges worldwide. From France to Nigeria, Binance has faced increased scrutiny and regulatory pressure over its operations. Notably, Nigeria’s Securities and Exchange Commission has highlighted similar concerns regarding the solicitation of Nigerian citizens for crypto trading activities by Binance.
Additionally, Binance’s operations in the United States faced intense scrutiny, leading to significant legal battles and multi-billion-dollar settlements. The exchange officially exited the US market, and its Former CEO, Changpeng Zhao, stepped down from his role.
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- Source: https://www.financemagnates.com//cryptocurrency/binance-faces-escalating-regulatory-pressure-philippines-blocks-operations/
