PHILIPPINES - The Philippine Securities and Exchange Commission (SEC) is taking decisive action against cryptocurrency exchange Binance, aiming to block the platform's operations within the country. The regulator has cited Binance's lack of proper corporate registration and unauthorized securities offerings as the primary reasons for the impending restriction.
The SEC, in collaboration with the National Telecommunication Commission (NTC) and the Department of Information and Communications Technology (DICT), is set to prevent users in the Philippines from accessing Binance's website and applications. This move is part of a broader enforcement effort to protect investors and ensure that all financial service providers operate within the legal framework.
Binance's operations have come under scrutiny for violating Republic Act No. 8799, also known as the Securities Regulation Code. The SEC has highlighted the risks associated with the platform, particularly targeting Binance's social media promotions aimed at Filipino investors. The commission has stressed that those promoting or selling investments in Binance could face criminal liabilities, including fines of up to ₱5 million (USD1 = PHP55.363) or imprisonment for up to 21 years.
In addition to direct enforcement measures, the SEC has also reached out to tech giants Google (NASDAQ:GOOGL) and Meta (NASDAQ:META), requesting the prohibition of Binance advertisements in the Philippines. The SEC's planned actions are expected to take effect within three months, signaling a significant shift in the regulatory landscape for cryptocurrency exchanges operating in the Philippines.
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