Binance Operating Without License in Philippines, Regulator Says – Binance, a cryptocurrency exchange, has been running in the Philippines without the required approval or license, as stated by the local securities regulator. Individuals engaged in promoting or trading on Binance may encounter up to 21 years of imprisonment and fines totaling $90,000, according to the Philippines SEC.
On November 28, the Securities and Exchange Commission (SEC) of the Philippines issued a cautionary notice about Binance, stating that the exchange lacks authorization to sell or offer securities within the country. The statement underscored that exchanges, including Binance, are required to seek registration and furnish comprehensive details about the securities they offer before making them available to the public.
This information encompasses the issuance price, the characteristics of the securities, and other relevant data. According to the Securities Regulation Code (SRC) in the Philippines, securities issuers must be registered in the country before being presented for investment. Additionally, the issuer is obligated to obtain a secondary license to sell or offer securities to the public, as highlighted in the statement.
Adding: “Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the SRC.” Beyond lacking the required license, the SEC contended that Binance had been unlawfully promoting its services in the country.
The regulator cautioned that entities engaged in promoting or trading on Binance could face criminal liability under Section 28 of the Securities Regulation Code. The statement highlights that this criminal offense, falling under Section 73 of the Securities Regulation Code, entails a penalty of a fine reaching 5 million Philippine pesos ($90,300), imprisonment for up to 21 years, or a combination of both.
Despite receiving several warnings, Binance appears to persist as a prominent crypto trading platform in the Philippines. Some users referred to its local services as “reliable and stable” on social media three months ago. A Reddit commentator suggested that the regulatory decisions of the United States SEC regarding Binance’s legal status might influence the actions of Philippine authorities.
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Stating: “Binance is currently being sued by the U.S. SEC. If it loses in that case, every Binance operation in most countries, including the Philippines, would crumble like a house of cards. So if I were you trade on BSP-regulated exchanges like PDax and Coins.ph.” A few days after Binance CEO Changpeng Zhao admitted guilt in a U.S. court for violating U.S. Anti-Money Laundering laws and resigned as CEO, this development emerges.