The financial regulator of the Philippines will block local user access to Binance, one of the world’s largest cryptocurrency exchanges, citing concerns over the firm’s unlicensed operations in the country.
The country’s Securities and Exchange Commission (SEC) said it received the assistance of the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform, according to a statement released by the SEC.
Officials from the regulatory body explained that they have identified the aforementioned platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos.
The Philippines’ financial watchdog alleges that Binance offers investment products such as leveraged trading services and crypto savings accounts without the required licenses, which violates the Securities Regulation Code.
The ban will take effect by June 2024 to offer investors time to exit their position held through Binance, according to the SEC. The agency also asked Google and Meta to block Binance-related advertising from showing up on their platforms for Filipino users.
The ban in the Philippines is one of the regulatory hurdles Binance has faced worldwide. In early March 2024, Nigerian authorities have imposed a hefty USD 10 billion penalty on the exchange platform, alleging that it manipulated exchange rates, causing significant financial losses within the country. The fine comes amid accusations that Binance operated illegally in Nigeria, flouting regulatory requirements, and contributing to economic instability. Additionally, two foreign Binance executives have been arrested on charges including money laundering and financial terrorism, further escalating the situation.
In November 2023, Binance has agreed to pay USD 4 billion to settle a US Department of Justice investigation. The probe centred on violations of the Bank Secrecy Act and failure to register as a money transmitting business, among other charges. The company’s CEO pleaded guilty to not upholding an effective anti-money laundering program and has stepped down from his role. The resolution involves multiple US agencies, including FinCEN, OFAC, and the CFTC.
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