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The Philippine Securities and Exchange Commission (SEC) is taking decisive action against Binance, the world’s largest cryptocurrency exchange. The SEC’s concerns stem from Binance’s unregulated promotion and sale of investment products in the Philippines, violating local securities laws.
Activities in the Spotlight
The heart of the issue lies in Binance’s engagement in activities for which it lacks the necessary authorization in the Philippines. The SEC has pointed out that Binance is not a registered corporation in the country and does not have the required license to sell or offer securities. This lack of authorization puts Binance in a precarious position, especially in light of its extensive promotional efforts on social media.
To shield the public from risks associated with unregistered investments, the SEC is initiating measures to restrict access to Binance within the Philippines. This decision aims to safeguard Filipino investors from potential financial harm. The SEC has set a three-month timeline for this restriction to take full effect, providing a grace period for investors to withdraw their funds and close their positions in the crypto exchange.
To enforce its decision, the SEC is collaborating with major technology companies. It has reached out to Alphabet’s Google and Facebook’s parent company, Meta, requesting them to halt all online advertisements for Binance targeted at users in the Philippines.
A Turbulent Time for Binance
The challenges for Binance do not end with the Philippine SEC’s actions. The exchange is currently grappling with the aftermath of its former chief, Changpeng Zhao, stepping down following his admission of guilt in violating U.S. anti-money laundering laws.
Richard Teng, Binance’s newly appointed chief, is now facing a series of daunting tasks. He inherits a legacy of intense scrutiny from U.S. financial authorities, an ongoing lawsuit by the U.S. Securities and Exchange Commission, and the uncertainty of maintaining Binance’s dominance in the industry.