The Philippines’ SEC (Security and Exchange Commission) announced yesterday that it would bar Binance from the country over the crypto exchange’s lack of the requisite license to offer its services within the jurisdiction.
According to the SEC, the operator of Binance wasn’t a registered corporation within the Philippines and had no operating license and authority to sell or offer any kind of securities in the country.
In a statement released by the SEC, shutting access to Binance will be implemented within three months of issuing its advisory on Tuesday, November 28. The reason is to buy Filipino Binance investors enough time to retrieve their investments from the exchange.
Following its proposed block on Binance, the SEC has asked Google and Meta to discontinue the crypto exchange from running social media advertisements in the country. In addition, it has asked the National Telecommunications Commission and its Department of Information Technology to assist in efforts to block the exchange.
The country has also initiated a crackdown on anyone who will be found selling or promoting cryptocurrency transactions of any form on the Binance platform.
“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,” stated the SEC.
Yesterday, the SEC said the exchange is liable to criminal charges for offering its services without a license. The platform could also end up paying a five million Pesos fine and/or face 22 years in prison.
A Consecutive Series of Attacks on Binance
It’s been quite a rollercoaster for Binance these past few weeks, beginning with the resignation of its former CEO, Changpeng Zhao, after fining the exchange over $4.3 billion for US sanctions and anti-money-laundering violations.
This week, celebrity soccer player Christiano Ronaldo was struck with a $1 billion proposed class lawsuit for promoting Binance and allegedly causing some investors to lose money after they invested in some tokens and unregistered securities.
Binance, under its new chief, Richard Teng, is poised to build on its former CEO’s legacy, right the company’s wrongs with the US SEC, and set it on an upward course again.
GMA, a Filipino local news agency, has contacted Binance following the proposed blocking of the exchange from the country’s population. Binance said it “acknowledged and respected” the SEC’s statement.“At Binance, we are committed to aligning with applicable local regulations. Under our new leadership, we have taken proactive steps to address the SEC’s concerns,” stated Binance.