The Philippines Securities and Exchange Commission (SEC) has taken action against cryptocurrency exchange Binance, a move that could have significant implications for investors in the country. The regulator raised concerns about Binance offering unregistered securities to Filipinos and functioning as an unregistered broker, which is a clear violation of the country’s securities laws. SEC Chairperson, Emilio Aquino, emphasized the threat that Binance poses to the security of investor funds in the Philippines, prompting the decision to request Google and Apple to remove Binance from their app stores.
Regulatory Action
This recent development adds to the list of troubles Binance has faced in recent months. The Philippines’ National Telecommunications Commission has also taken steps to block access to Binance websites in the country. The SEC had previously issued warnings to the public regarding the use of Binance services and had been contemplating blocking Binance in the Philippines since November the previous year. The crackdown is aimed at protecting investors from potential harm and preventing the further spread of Binance’s alleged illegal activities within the country.
In the midst of these regulatory challenges, Binance has undergone significant changes, including the replacement of its CEO with Richard Teng, a former chief of the Abu Dhabi Global Markets regulator. The reshuffle in leadership followed a substantial settlement where Binance was ordered to pay a hefty fine for money laundering violations. Former CEO Changpeng Zhao is facing legal action for violating the Bank Secrecy Act and is expected to step down following sentencing on April 30. Additionally, Binance is facing lawsuits from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission for mishandling customer assets and operating an unregistered exchange in the United States.
The SEC’s directive for Filipinos with investments in Binance to close their positions or transfer their assets to registered exchanges within the Philippines raises questions about the future of cryptocurrency trading in the country. With increasing regulatory scrutiny and legal challenges facing Binance, investors are left to navigate a complex and uncertain landscape. The need for greater transparency and compliance within the cryptocurrency industry is underscored by these latest developments, as regulators worldwide take steps to protect investors and maintain the integrity of financial markets.
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