The Securities and Exchange Commission (SEC) of the Philippines has initiated the blocking of Binance's online presence due to its operation without the necessary licenses and permits.
This action was taken after the SEC concluded that Binance was offering financial services, such as spot trading with leverage, futures contracts, and cryptocurrency staking, without SEC approval.
The National Telecommunications Commission (NTC) is tasked with executing the SEC's order to block Binance's website and associated online platforms.
The SEC aims to protect Filipino investors from the risks associated with transactions with unlicensed cryptocurrency exchanges.
The move is part of a broader effort by the SEC to ensure that all investment platforms operating in the Philippines are registered and comply with regulatory standards.
SEC blocks Binance in the Philippines
To protect Filipino investors, the SEC orders the blocking of Binance's website and associated platforms for lacking necessary permits, urging users towards regulated exchanges
At a glance
The Securities and Exchange Commission (SEC) of the Philippines has initiated blocking the online presence of Binance, one of the world's largest cryptocurrency exchanges. The SEC took this action after concluding that Binance has been operating within the Philippines without the necessary licenses and permits required under the Securities Regulation Code (SRC).
The SEC's decision came earlier this month when the commission formally approved a request submitted to the National Telecommunications Commission (NTC). The NTC will execute the order to block Binance's website and other associated online platforms. This move aims to protect Filipino investors from the risks of engaging with an unlicensed cryptocurrency exchange.
Binance, known for its extensive range of financial instruments and investment products, has been offering services such as spot trading with leverage, futures contracts, and cryptocurrency staking without SEC approval. Despite its vast daily trading volume and significant user base, Binance failed to obtain a license to solicit investments or operate a securities exchange in the Philippines.
The SEC has cautioned Filipino investors against using Binance's platforms and has been considering the website's blocking since November 2023. The Commission's Chairperson, Emilio B. Aquino, emphasized the risk to the security of Filipino investors' funds if access to Binance continued.
The SEC's collaboration with the National Telecommunications Commission (NTC) aims to protect investors by blocking unauthorized investment platforms. This measure is part of a broader effort that previously saw the blocking of platforms like OctaFX and MiTrade.
The SEC argues that as Binance is not licensed to operate, it would potentially put Filipino investors' funds at risk. By banning unregistered platforms, the SEC hopes to ensure investors use services that comply with regulations.
The SEC has also taken additional steps to restrict Binance's presence in the Philippines. It has requested that major tech companies, such as Google and Facebook's parent company, Meta, block Binance advertisements. This action demonstrates the increasing global trend of regulators seeking tighter oversight of cryptocurrency platforms to ensure investor protection.
Because of the ban, Filipinos will have limited access to Binance. Users need to use SEC-registered exchanges, which may have different fees and features.
Investors are advised to redirect their investments to authorized products and platforms as the SEC continues to enforce regulations to safeguard the public's financial interests.