Binance, the world’s leading cryptocurrency exchange, is facing a ban in the Philippines due to concerns raised by the country’s financial regulator regarding its unlicensed operations. The Philippines Securities and Exchange Commission (SEC) issued a warning to Binance in November for operating without the necessary licenses in the country.
In response to the SEC’s warning, the Philippines SEC announced its decision to ban Binance in a notice published on Monday. The regulator stated that continued access to Binance’s website and online trading platform posed a threat to the security of Filipino investors’ funds. The SEC sought assistance from the National Telecommunication Commission (NTC) to block local access to Binance’s platforms.
The SEC filed a formal request with the NTC on March 12th to block Binance’s website and other associated web pages. The regulator accused Binance of offering investment and trading services without obtaining the required licenses and of violating the Securities Regulation Code by actively promoting its platform for investment activities.
The ban is set to take effect in three months, allowing investors time to exit their positions and withdraw funds from Binance. This decision follows the SEC’s warning issued in November 2023, indicating the regulator’s commitment to enforcing regulatory compliance within the cryptocurrency industry.
The ban in the Philippines adds to Binance’s ongoing regulatory challenges worldwide. In December 2023, Binance was ordered to pay a $2.7 billion fine by a US court, and its former CEO, Changpeng Zhao, faced a $150 million fine from the Commodity Futures Trading Commission (CFTC). These legal actions stemmed from allegations of evading federal laws and operating an illegal derivatives exchange.
As part of a settlement with US regulatory authorities, Changpeng Zhao stepped down from his role as CEO of Binance and pleaded guilty to civil and criminal charges related to anti-money laundering laws. The ban in the Philippines further underscores the increasing regulatory scrutiny faced by Binance and other cryptocurrency exchanges globally.
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