- The Philippines SEC has issued a warning over Binance, signaling potential restrictions due to its lack of authorization to sell securities to the public
- The regulator has accused Binance of targeting Filipinos through ads and social media, raising the possibility of criminal prosecution
- The SEC is seeking a complete ban on Binance in response to these transgressions
The Philippines Securities and Exchange Commission (SEC) has issued a warning over citizens’ use of Binance, signaling potential restrictions on its access in the country. The SEC says that Binance is “not authorized to sell or offer securities to the public in the Philippines” and accuses the exchange of targeting Filipinos through adverts and social media campaigns, an act that could result in criminal prosecution. The agency is also seeking a full ban on Binance in the country as a result of its transgressions.
Promoters Face Legal Sanction
The SEC posted a notice on its website yesterday in which it said that Binance was falling foul of its regulations:
This is to inform the public that the online cryptocurrency exchange BINANCE is NOT
AUTHORIZED TO SELL or OFFER SECURITIES to the public in the Philippines. Based on the reports and information gathered by the Commission, BINANCE has been actively
employing promotional campaigns on various social media platforms to attract and entice Filipinos to engage in investment and trading activities using its platforms.
According to the notice, individuals involved in roles such as salesmen, brokers, dealers, agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance in convincing people to invest may face criminal charges under Section 28 of the Securities Regulation Code. Penalties could include fines of up to 5 million Philippine Pesos ($90,000) or imprisonment for up to 21 years.
Binance to be Blocked?
In addition to warning Filipinos off Binance, the regulator is also pursuing assistance from the National Telecommunications Commission to potentially block Binance in the country. To this end, it has already directed Google and Meta to block local advertisements related to Binance a block which, if approved, would be implemented over three months, allowing local users time to liquidate and withdraw their positions.
Local media in the Philippines reported Binance’s response, where the exchange expressed its commitment to aligning with applicable local regulations, highlighting proactive steps taken under new leadership to address the SEC’s concerns.
This new leadership has come on board after former CEO, Changpeng Zhao, stepped down in the wake of the company’s blockbuster $4.3 billion settlement with US authorities.
