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Binance, the global cryptocurrency exchange, is on the verge of being kicked out of the Philippines by the Securities and Exchange Commission (SEC) as the authorities are working with Google and Apple to remove the exchange's applications from their respective app marketplaces.
In a letter to the tech giants, SEC Chairperson Emilio B. Aquino stressed that the continued availability of Binance applications on the Google Play Store and the Apple App Store could jeopardize the security of funds by investing Filipinos.
Concerns Over Binance’s noncompliance
Aquino maintained that Binance’s operation violates Republic Act No. 8799, also known as the Securities Regulation Code, as the exchange is operating as an unregistered broker in the country.
The SEC previously made efforts to engage the National Telecommunications Commission to block access to websites used by Binance in the Philippines. However, with VPNs, denial of such access can be overcome easily. The Philippines authority in November 2023 also issued warnings to the public against investing in and using Binance, citing the company's lack of proper licensing and registration for its operations.
The SEC's grouse with Binance is that despite actively running promotional advertisements on different social media platforms to woo Filipinos to engage in investment and trading activities using its platforms, the exchange continues to shun securing the SEC license, permitting it to solicit investments from the public.
Binance's global regulatory challenges
According to the SEC, Binance is refusing to follow guidelines to operate as an exchange for the buying and selling of securities, as required by law in the Philippines, despite a global reach and substantial membership base of over 183 million users. The exchange is no stranger to legal issues with authorities, as it is still in a legal battle with the U.S. SEC.
With an average daily trading volume of $65 billion and over 402 cryptocurrencies on its platform, Binance stands as the largest exchange in the world. However, it has faced regulation issues in different parts of the world as two of its executives are currently facing investigations in Nigeria.
The exchange suffered a similar fate in 2021 with Singaporean authorities as deposits and spot trading on Binance were restricted after failure to comply with regulatory standards set by the government.
Arman Shirinyan
Yuri Molchan
Alex Dovbnya
