Philippine SEC Targets Binance for Regulatory Violations

Philippine SEC's Action Against Binance

The Philippine Securities and Exchange Commission (SEC) is taking firm steps to curtail the operations of cryptocurrency exchange Binance in the country. The primary concerns driving this action are Binance's lack of proper corporate registration and its unauthorized securities offerings.

Collaboration with Key Agencies

To effectively execute this blockade, the SEC is collaborating with the National Telecommunication Commission (NTC) and the Department of Information and Communications Technology (DICT). Their joint efforts aim to prevent Filipino users from accessing Binance's online platforms. This initiative is part of a larger enforcement strategy to safeguard investors and ensure compliance with the local legal framework.

Violations of Securities Regulation Code

Binance has been scrutinized for violating Republic Act No. 8799, the Securities Regulation Code. The SEC has pinpointed several risks associated with Binance, particularly concerning its social media campaigns targeting Filipino investors. The commission warns that individuals promoting or selling investments linked to Binance may face severe legal consequences, including fines up to ₱5 million and potential imprisonment.

Request to Block Advertisements

In a further move to limit Binance's influence, the SEC has engaged major tech companies like Google and Meta to cease promoting Binance advertisements in the Philippines. These regulatory actions are expected to be implemented within the next three months, marking a pivotal shift in the regulation of cryptocurrency exchanges within the region.

By enforcing these measures, the SEC underscores its commitment to protecting investors and maintaining the integrity of the financial services sector in the Philippines.