[Breaking News] Philippines SEC Issues Advisory Against Binance for Unauthorized Operations

In a significant regulatory development, the Philippines Securities and Exchange Commission (SEC) has issued an advisory against the global cryptocurrency exchange, Binance, for operating without proper authorization in the Philippines.

This move comes just after the SEC recently said it will start naming unlicensed exchanges in its advisories going forward, as well as working with the National Telecommunications Commission (NTC) to block access to the exchanges’ websites.

Unauthorized Securities Activities Highlighted

The SEC’s advisory explicitly states that Binance is not authorized to sell or offer securities to the public in the Philippines.

• As per the SEC, despite being a registered broker/dealer overseas, Binance’s activities in the Philippines require adherence to specific regulations under the Securities Regulation Code (SRC). These include:
  • Registration of securities with the SEC
  • Operating as a registered corporation or licensed dealer in the Philippines
  • Possessing a secondary license for public offerings.

To find the list of BSP or Bangko Sentral ng Pilipinas-registered virtual asset service providers, click here.

The Commission highlighted Binance’s aggressive promotional campaigns on various social media platforms, aimed at attracting Filipinos to invest and trade through its platforms.

These include offerings like spot trading with leverage, futures and option contracts, cryptocurrency savings accounts, staking services, and platforms for initial coin offerings.

Legal Implications for Unregistered Operations

The SEC warned that those acting as salesmen, brokers, dealers, agents, or promoters for Binance within the Philippines could face criminal liability under Section 28 of the SRC. The penalties include a fine of up to five million pesos or imprisonment of up to twenty-one years, or both.

Public Caution Advised

The SEC advises the public to exercise caution before investing in unregistered online investment platforms like Binance. This advisory aligns with the Commission’s previous warnings against dealing with non-registered foreign entities.

BitPinas Interview with SEC Commissioner Provides Context

In a recent interview at the YGG Web3 Games Summit, conducted by this writer, Commissioner Kelvin Lee mentioned the SEC’s next steps, including partnership with the NTC to block unregistered entities and the development of the Digital Asset Security Service Provider Rules.

“We will keep coming up with advisories and we’re moving forward to shut down with the NTC some of those entities that are named in the advisories, precisely because we don’t want you to operate here If you’re not registered.”

Kelvin Lee, Commissioner, SEC

This is the first time the SEC named Binance in its advisory vs unregistered exchanges. Previously, Infrawatch convenor Terry Ridon published a letter sent to him by the SEC confirming that Binance is not registered in the country. This is in response to his inquiry to the Commission and the Bangko Sentral ng Pilipinas (BSP) to ban Binance from operating in the country.

Recent Binance News: Binance Pleads Guilty

Recently, Binance has admitted to breaching the U.S. Bank Secrecy Act (BSA). As a result, Binance is set to pay a substantial penalty of $4.3 billion, marking one of the most sizeable fines ever levied against a corporate entity.

This is a developing story: Philippines SEC Issues Advisory Against Binance for Unauthorized Operations

Disclaimer:

• Before investing in any cryptocurrency, it is essential that you carry out your own due diligence and seek appropriate professional advice about your specific position before making any financial decisions.
• BitPinas provides content for informational purposes only and does not constitute investment advice. Your actions are solely your own responsibility. This website is not responsible for any losses you may incur, nor will it claim attribution for your gains.

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• Source: https://bitpinas.com/regulation/ph-sec-binance-advisory/