Good day everybody,
Welcome to CryptoGod-1's blog on all things crypto. In this post I will be looking at how the Philippine SEC's Ban on Binance will impact the nations crypto space with the ban coming into effect.
Philippines Securities and Exchange Commission
It has been revealed that the Philippines Securities and Exchange Commission (SEC) will block local access to Binance. The Philippines SEC will basically be implementing its ban on Binance and this was revealed as part of a notice published by the financial regulator on the 25th of March 2024. The SEC has accused Binance of continuously offering a variety of investment and trading opportunities to Filipinos without obtaining the necessary license from the commission.
The published media briefing noted that the Philippines SEC had previously filed a formal request to the National Telecommunication Commission (NTC) on the 12th of March 2024. Within that formal request they looked to block access to the Binance website, applications, and other web pages used by the exchange.
The commission has now deepened its ban on Binance by requesting Google and Meta to block all marketing campaigns related to the crypto exchange in the Philippines. The SEC have stated that all previous campaigns and trade offerings are illegal and the exchange has yet to secure a license from its agency to solicit investment or create/operate an exchange as required by Republic Act No. 8799 or the Securities Regulation Code (SRC). The regulatory agency previously informed residents that the crypto exchange was not operation on a legal basis nor was it authorised to sell or offer securities in the Philippines. They also noted that Binance’s continuous crypto promotions may have criminal liability. The notice from the Philippine SEC noted:
“Those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance in selling or convincing people to invest in its platform within the Philippines, even through online means, may be held criminally liable under Section 28 of the SRC.”
With the ban expected to be effective within a three-month period there is considerable time for Filipino traders to close their investment positions held on the Binance, or transfer them to another exchange or cold / hot wallets.
The SEC Chair, Emilio B. Aquino, also noted that the regulatory body believes that Filipinos’ continuous access to Binance websites and associated mobile applications “poses a threat to the security of the funds of investing Filipinos.” Previously the Philippines SEC had issued a warning notice to Binance on the 28th of November, 2023.
This move by the Philippines SEC to ban Binance is a clear warning to other unregulated exchanges operating within the nation. It also shows the importance of compliance with local securities laws in the Philippines. This is not an isolated incident, as the exchange has faced increasing regulatory scrutiny worldwide.
Back in 2023 the Commodity Futures Trading Commission (CFTC) filed charges against Binance as they alleged the company had been operating an illegal digital asset derivatives exchange while also claiming Binance were evading federal laws. The United States Securities and Exchange Commission also charged Binance Holdings LTD and ex-CEO Changpeng Zhao (CZ) for allegedly operating unregistered exchanges, broker exchanges, clearing houses, and the unregistered offer and sale of securities.
CZ and Binance did plead guilty to a range of federal charges, including anti-money laundering violations and unlicensed money transmission, back on the 21st of November 2023. This was after a series of investigations by the SEC, the US Department of Justice (DOJ), and the CFTC. This led to CZ resigning as the CEO of Binance, which was part of the agreement with the DOJ.
The United States District Court for the Northern District of Illinois ordered CZ to pay $150 million, and the exchange ruled to pay $2.7 billion to conclude enforcement action, according to an announcement by the CFTC on the 18th December, 2023. Currently CZ is released on a $175 million bond but he is still awaiting a court sentencing in relation to his role in Binance money laundering charges.
Have a great day.
Peace. CryptoGod-1.
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