The Securities and Exchange Commission (SEC) in the Philippines has taken a strict stance against cryptocurrency exchange Binance. In a recent press release, SEC Chairperson Emilio Aquino announced that the regulator had issued letters to both Google and Apple, requesting the removal of all Binance-related applications from their respective app stores. The reason cited for this action was the threat posed to the security of the funds of Filipino investors by allowing continued access to Binance sites and apps.
The SEC accused Binance of offering unregistered securities to Filipinos and operating as an unregistered broker, which is a clear violation of the country’s securities laws. This move was seen as necessary to protect the investing public from the detrimental effects of Binance’s illegal activities on the Philippine economy. Despite repeated attempts to contact Binance, Google, and Apple for comments on the matter, there was no immediate response from any of the parties involved.
This latest directive from the SEC comes after previous actions taken by the National Telecommunications Commission to block access to Binance websites in the Philippines. The SEC had already issued warnings to the public against using Binance, dating back to November of the previous year. The regulator had also been studying the possibility of blocking Binance’s services in the country for some time now, due to the exchange actively promoting its services on social media to attract funds from Filipinos.
Advice to Investors
In light of these developments, the SEC urged Filipino investors with holdings in Binance to either close their positions immediately or transfer their cryptocurrency to wallets or exchanges registered in the Philippines. This move aims to safeguard investors from any potential risks associated with the use of unlicensed exchanges. The actions taken by the SEC against Binance add to a series of legal troubles faced by the exchange, including a recent leadership change and hefty fines imposed for alleged money laundering violations.
Legal Troubles for Binance
Binance made headlines when it replaced its CEO with Richard Teng, the former chief of UAE regulator Abu Dhabi Global Markets, following a settlement with the U.S. government that required the payment of a massive fine. The former CEO, Changpeng Zhao, was charged with violating the Bank Secrecy Act and has stepped down from his position. Binance is currently facing lawsuits from both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over allegations of mishandling customer assets and running an illegal, unregistered exchange in the U.S.
Overall, the Philippines SEC’s order to remove Binance from Google and Apple’s app stores is a significant blow to the exchange’s operations in the country. It underscores the importance of regulatory compliance in the cryptocurrency industry and serves as a warning to other exchanges that fail to adhere to local laws and regulations.