Binance, a prominent cryptocurrency exchange, is reportedly operating in the Philippines without the required approval or license, as stated by the local securities regulator. On November 28, the Philippines Securities and Exchange Commission (SEC) issued a warning, alerting the public that Binance lacks authorization to sell or offer securities in the country.
The SEC emphasized the obligation for exchanges like Binance to register and provide comprehensive information about the securities they offer before making them available to the public. This information includes issuance price, nature of securities, and other relevant details. According to the Philippines’ Securities Regulation Code (SRC), securities issuers must be registered in the country and hold a secondary license to offer securities to the public.
The SEC’s database reportedly indicates that Binance’s operator is not registered as a corporation in the Philippines and is operating without the necessary license or authority to sell securities, as defined by the SRC.
In addition to the lack of a required license, the SEC accused Binance of illicitly promoting its services in the country. The regulator cautioned that entities engaged in promoting or trading on Binance could face criminal liability under Section 28 of the SRC. This offense carries penalties of a fine up to 5 million Philippine pesos ($90,300), imprisonment of up to 21 years, or both, according to Section 73 of the SRC.
Despite prior warnings, Binance has reportedly continued to operate as a major cryptocurrency trading platform in the Philippines. Some users have praised its local services as “reliable and stable” on social media. However, amid the regulatory challenges, some commentators suggest using exchanges regulated by the Bangko Sentral ng Pilipinas (BSP).
This development follows recent legal troubles for Binance, with CEO Changpeng Zhao pleading guilty to violating U.S. Anti-Money Laundering laws and stepping down from his role. In September 2023, the Philippines SEC collaborated with the U.S. SEC to combat cryptocurrency fraud.
