- The Philippines Securities and Exchange Commission (SEC) has warned against cryptocurrency exchange Binance, stating that it is operating without the necessary licenses and approvals in the country.
- The SEC has accused Binance of violating the Philippines’ Securities Regulation Code by offering securities without registration and engaging in unauthorized promotional activities.
- Binance could face criminal charges and substantial financial penalties if it fails to comply with the SEC’s regulations.
Cryptocurrency exchange Binance has found itself in the crosshairs of the Philippines Securities and Exchange Commission (SEC), which issued a warning against the platform for operating without the necessary licenses and approvals.
The SEC’s statement, released on November 28, highlights Binance’s unauthorized activities in the country, specifically emphasizing the platform’s failure to register with the commission and acquire the requisite licenses to sell or offer securities.
According to the SEC, entities involved in promoting or trading on Binance could face criminal charges under Section 28 of the Securities Regulation Code (SRC). This offense carries a penalty of up to 5 million Philippine pesos ($90,300) in fines, 21 years of imprisonment, or both.
The SEC’s stern warning stems from Binance’s alleged non-compliance with the SRC, which mandates that securities issuers must be registered with the commission before offering their products for investment. Additionally, issuers are required to obtain a secondary license to sell or offer securities to the public.
The SEC’s statement underscores that Binance’s failure to adhere to these regulatory requirements renders its operations in the Philippines illegal. The commission further emphasized the need for exchanges like Binance to provide detailed information about their offerings, including issuance prices, the nature of securities, and other relevant data.
In light of these revelations, the SEC has urged the public to exercise caution when investing in cryptocurrency, especially through unregistered platforms like Binance. The commission’s actions underscore the importance of regulatory oversight in the burgeoning cryptocurrency landscape, safeguarding investors’ interests and ensuring compliance with established financial regulations.