coinspress.com
In a recent announcement, the Philippines Securities and Exchange Commission (SEC) sounded a cautionary note regarding Binance, stressing its operational status within the country.
The SEC underscored concerns about Binance’s lack of official authorization, advising against involvement in any cryptocurrency-related investments facilitated by the platform.
Highlighting the absence of legal registration for Binance as a corporation in the Philippines and its failure to secure the necessary licenses to engage in securities trading, the SEC urged vigilance among potential investors considering transactions through this unregistered online entity.
The SEC’s advisory extended to individuals promoting or facilitating Binance investments within the Philippines, warning of potential legal implications under the Securities Regulation Code (SRC) Section 28. This section could impose hefty penalties, including fines amounting to Five Million Pesos (P 5,000,000.00) or imprisonment for a maximum of Twenty-One (21) years, or both.
This advisory coincides with CZ, Binance’s former CEO, admitting guilt to running an unregistered money-transmitting business. CZ’s plea deal involved a significant $4.3 billion settlement with U.S. authorities, effectively resolving extensive investigations into alleged money laundering and violation of sanctions linked to Binance’s operations.
READ MORE: Crypto vs. Tech: Raoul Pal’s Liquidity Insights
Binance has been under the regulatory spotlight globally due to concerns over consumer protection and possible involvement in illicit financial activities. Previous reports hinted at Binance’s attempts to acquire a Philippine company to secure local licenses before facing restrictions.
While no outright ban on Binance by the Philippines SEC has been declared, the advisory serves as a stern warning regarding the platform’s lack of formal authorization for conducting business in the country. The SEC strongly advises cautious behavior when using the platform and stresses the potential risks associated with advocating for Binance’s services locally, which could result in substantial fines.