Binance Called Out by Philippines for Not Having Operating License
Potential fines for promoting Binance in the Philippines were outlined by the watchdog in a statement.
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The Philippines Securities and Exchange Commission (SEC) has cautioned consumers against using Binance, stating that the exchange lacks the necessary license to operate in the country. Consequently, the public is advised to refrain from purchasing any cryptocurrency investment products on the platform.
“Binance is not registered as a corporation in the Philippines and operates without the necessary license to sell or offer any form of securities, as defined under Section 3.1 of the Securities Regulation Code (SRC).
In light of these circumstances, the public is advised to exercise caution before investing in these kinds of unregistered online investment platforms and their representatives.
Furthermore, individuals who act as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of the Binance platform in selling or convincing people to invest in this platform within the Philippines, even through online means, may be held criminally liable under Section 28 of the SRC. They could face penalties of a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty-One (21) years or both,” the regulator said in a statement.
Last week, CZ ex CEO of Binance pled guilty to running an unregistered money-transmitting business and agreed to pay $50 million in fines as part of a $4.3 billion settlement with U.S. authorities. The plea deal resolved a long-running investigation into Binance’s alleged facilitation of money laundering and sanctions violations.
Regulators globally have targeted Binance due to concerns about consumer protection and illicit financial flows. Reports indicate that Binance was considering acquiring a Philippine company to obtain local licenses prior to the ban.
Despite some claims on social media, the Philippines Securities and Exchange Commission (SEC) has not banned Binance outright. The regulatory agency is issuing a warning that Binance lacks authorization to operate in the country. It is advising users to exercise caution when using the platform. Additionally, the SEC cautioned that promoting Binance locally could lead to fines.
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