The Securities and Exchange Commission (SEC) of the Philippines has announced plans to block local user access to Binance, the world’s leading cryptocurrency exchange.
Citing concerns over Binance’s unlicensed operations in the country, the SEC has collaborated with the National Telecommunication Commission (NTC) to restrict access to Binance’s website and online trading platform.
According to SEC Chairperson Emilio B. Aquino, the decision stems from Binance’s offering of investment products such as leveraged trading services and crypto savings accounts without the necessary licenses, thus violating the Securities Regulation Code. As a result, the ban will be implemented within three months to allow investors to exit their positions held through Binance.
In addition to blocking access, the SEC has requested major tech companies like Google and Meta to prevent Binance-related advertising from reaching Filipino users on their platforms.
This move by the Philippines’ financial watchdog marks another regulatory setback for Binance, which has been under increasing scrutiny worldwide. In December 2023, Binance and its former CEO, Changpeng “CZ” Zhao, were ordered by a U.S. court to pay significant fines to the Commodity Futures Trading Commission (CFTC) for operating an illegal derivatives exchange.
As part of a settlement with U.S. authorities, CZ agreed to step down from his role at Binance. He also pleaded guilty to civil and criminal charges related to Anti-Money Laundering laws. However, CZ’s sentencing for money laundering charges has been delayed until April 30, with him currently free on a substantial release bond.
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Why is the Philippines banning Binance?
The Philippines’ Securities and Exchange Commission (SEC) is banning access to Binance due to concerns over the exchange’s unlicensed operations in the country, particularly its offering of investment products without the required licenses.
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When will the ban on Binance access take effect in the Philippines?
The ban will take effect within three months, giving investors time to exit their positions held through Binance.
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What actions has the SEC taken to enforce the ban on Binance access?
The SEC has collaborated with the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform. Additionally, major tech companies like Google and Meta have been requested to prevent Binance-related advertising targeting Filipino users.
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What regulatory issues has Binance faced in the United States?
In December 2023, a U.S. court ordered Binance and its former CEO, Changpeng “CZ” Zhao, to pay significant fines to the Commodity Futures Trading Commission (CFTC) for operating an illegal derivatives exchange.
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What legal actions have been taken against CZ, the former CEO of Binance?
CZ pleaded guilty to civil and criminal charges related to Anti-Money Laundering laws as part of a settlement with U.S. authorities. However, his sentencing for money laundering charges has been delayed until April 30, and he is currently free on a substantial release bond.