The Philippine Securities and Exchange Commission (SEC) has announced a significant regulatory move against the popular cryptocurrency exchange Binance. The SEC plans to block Filipino users' access to Binance's services due to the company's failure to secure necessary corporate registration and proper licensing for securities offerings in the Philippines. This decision comes after the SEC's observation of Binance's active marketing campaigns targeting Filipino investors on social media.
The regulatory body is collaborating with the National Telecommunication Commission (NTC) and the Department of Information and Communications Technology (DICT) to implement the access restrictions within the next three months. Moreover, the SEC has taken action against major online platforms, directing Google (NASDAQ:GOOGL) and Meta (NASDAQ:META) to halt advertising that promotes Binance's services to the Philippine market.
Under Republic Act No. 8799, entities that engage in securities transactions are required to hold a secondary license from the SEC. However, Binance has not registered as a corporation nor obtained the necessary licensing to operate within the Philippine jurisdiction. The SEC has issued a stern warning and has highlighted the possibility of pursuing legal action, which could result in significant fines or imprisonment, against individuals who facilitate or promote investment opportunities with Binance in the country.
The SEC's enforcement of these measures reflects a broader effort to regulate the cryptocurrency market and protect local investors from unauthorized and potentially risky financial activities.
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