Binance, the world’s biggest crypto exchange by trading volume, seems to be getting into a spiral of legal troubles. In a recent development, the Securities and Exchange Commission (SEC) of the Philippines issued a public warning against the use of Binance. This can be considered as a big blow to the crypto exchange.
Philippines SEC targets Binance
The Philippines’s SEC stated that Binance is not authorized to sell or offer securities to the public in the country. The SEC is also seeking to block access to Binance in the country to protect the public from unregistered investment products.
The commission alleged that the world’s largest crypto exchange has been actively promoting its platform on social media to attract users for trading. However, the SEC mentioned that under the Securities Regulation Code, entities involved in trading securities are required to obtain a secondary license from the commission.
As per the report, the SEC warned that individuals acting as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance within the Philippines, even through online means, may face criminal liability under Section 28 of the Securities Regulation Code. It added that the penalties include fines of up to P5 million (approx $90,000) or imprisonment of up to 21 years, or both.
Watchdog extends action
In order to enforce the restriction over Binance, the Philippines’s SEC intends to take help from the National Telecommunications Commission and the Department of Information and Communications Technology to block access in the country. However, this action is expected to take effect within three months of the advisory issuance. The move will allow Filipino investors to close their positions and withdraw their investments.
The report added that the SEC has approached Google and Meta to prohibit online ads from Binance in the Philippines. However, Binance responded to the matter by acknowledging the SEC’s statement. It stated a commitment to aligning with applicable regulations by taking proactive steps to address the regulator’s concerns.
