The Philippines Securities and Exchange Commission (SEC) has issued directives to both Google and Apple, instructing them to remove the Binance application from their respective app stores for users located in the Philippines. In a press release dated 23 April 2024, the SEC stated that it had collaborated with these tech giants to remove 'applications operated by cryptocurrency giant Binance,' with letters sent to the companies on 19 April regarding the removal of the apps from local marketplaces.
The SEC cited concerns regarding the security of funds belonging to investing Filipinos, identifying Binance as a threat due to its status as an unregistered entity offering securities to locals and operating as an unregistered broker, in violation of the country's securities regulations. Representatives from the SEC emphasised the necessity of removing Binance applications to prevent the further proliferation of its activities in the country, which could have detrimental effects on the local economy.
This action follows the SEC and the National Telecommunications Commission (NTC) blocking access to Binance websites on 25 March, with prior warnings issued by the SEC against using Binance for investments since November 2023. Despite being one of the world's largest crypto exchanges, Binance has yet to secure a licence to solicit investments or operate a securities exchange in the Philippines.
In response to the enforcement of the ban, an SEC official reiterated on 8 April that users were provided with a three-month period, with an extension, to withdraw their funds from Binance, after which the SEC would not endorse any methods for retrieving funds.
The SEC and the NTC had previously cracked down on unlicenced crypto trading platforms in the country, although Binance was unaffected at that time. Binance faces regulatory challenges globally, including a new class-action lawsuit in Canada for allegedly violating local securities laws.
However, Binance announced its intention to return to India after paying a USD 2 million fine for previous non-compliance with local regulations. Simultaneously, reports emerged that Binance obtained its crypto license in Dubai, also known as the Virtual Asset Service Provider (VASP) licence, following its co-founder Changpeng Zhao's relinquishment of his voting power in the exchange's local entity.
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