Binance’s violation of regulations pointed out
The Philippine Securities and Exchange Commission (SEC) on the 28th warned the public that crypto exchange Binance is selling securities without a license in the country.
The company explained that it is illegal for Binance employees as well as influencers to encourage investment on the company’s platform. Such acts are punishable by a fine of up to 5 million pesos (approximately 13.2 million yen), 21 years in prison, or both.
The SEC has not yet stated what securities or services constitute an offering of securities. Binance only explains that it is available on its website and app, and that the company offers spot and futures trading, staking services, and an initial exchange offering (ICO) platform.
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What is staking?
A system or service that allows you to earn rewards by depositing virtual currency for a specified period of time. By depositing virtual currency, you can contribute to the operation of the blockchain network and receive compensation in return.
▶️Virtual currency glossary
He pointed out that although Binance seems to have obtained business licenses in some regions, it does not meet the requirements set by Philippine law. Specifically, the company was accused of failing to meet its obligations to apply for registration of securities, provide details regarding securities, and issue securities as a licensed dealer.
He added that Binance is actively promoting itself in the country, but urged people to be careful before using unregistered investment platforms.
In response to the SEC’s call, a Binance representative commented to “The Block” as follows:
We are aware of the SEC’s statement and take it seriously.
Binance is committed to complying with local regulations and, under new leadership, will proactively address the SEC’s concerns.
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According to BitPinas, which reports cryptocurrency news in the Philippines, the SEC will request cooperation from related organizations and block access to Binance. It will prevent Filipino investors from using Binance.
In that case, we plan to implement the shutdown three months after issuing this warning. During this time, Binance users will be able to close positions and withdraw funds.
The SEC also reported that it will ask Google and Meta to stop displaying Binance ads in the Philippines.
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