Mar 25, 2024 at 04:40The Philippines is gearing up to bar local users from accessing Binance, the world’s leading cryptocurrency exchange, citing concerns about its unlicensed operations within the country, says the financial regulator.
According to a document from the Securities and Exchange Commission (SEC) dated March 25, the SEC collaborated with the National Telecommunication Commission (NTC) to block Binance’s website and online trading platform, citing potential threats to Filipino investors’ funds.
Chairperson Emilio B. Aquino of the SEC stated in a letter to the NTC that the identified platform poses a security risk to Filipino investors, as it offers investment products like leveraged trading services and crypto savings accounts without the necessary licenses, contravening the Securities Regulation Code.
The prohibition will come into force within three months, allowing investors ample time to withdraw their holdings from Binance. Additionally, the SEC has requested Google and Meta to prevent Binance-related advertisements from reaching Filipino users.
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This regulatory action in the Philippines is the latest in a series of challenges for Binance, as it faces heightened regulatory scrutiny globally.
In December 2023, a U.S. court ordered Binance to pay $2.7 billion in penalties, with its former CEO, Changpeng “CZ” Zhao, ordered to pay $150 million to the Commodity Futures Trading Commission (CFTC) in a settlement concluding a lawsuit filed in March 2023.
CZ agreed to step down from his position as CEO as part of a broader settlement with the U.S. Department of Justice, the Treasury Department, and the CFTC on November 21. He also pleaded guilty to various civil charges and one criminal charge related to Anti-Money Laundering laws.
Currently, Zhao is awaiting sentencing for money laundering charges, with his sentencing postponed until April 30. He is presently out on a $175 million release bond.
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