Philippines to Block Access to Binance Website and App in Three Months
The financial authorities in the Philippines have recently announced their intention to block local users’ access to Binance, the world’s largest cryptocurrency exchange platform. This decision, taken within the context of increased regulation in the cryptocurrency space, aims to combat the company’s unauthorized operations in the country.
The country’s financial regulator, the Securities and Exchange Commission (SEC), has revealed that it sought the assistance of the National Telecommunications Commission (NTC) to restrict access to Binance’s website and online trading platform, according to a document dated March 25.
The continued public access to these sites/applications poses a threat to the security of investors’ funds.
Philippines SEC
According to Emilio Aquino, the Chairman of the SEC, Binance offers investment products such as leveraged trading services and cryptocurrency savings accounts without the required licenses, thereby violating the Securities Regulation Code.
In response to this ban, which will be enforced in three months, Binance users are being provided with a transition period to close their positions. Furthermore, the SEC has also requested Google and Meta to block all Binance-related advertisements targeting Filipino users, in order to strengthen this measure.
Binance Under International Regulatory Pressure
The announcement of the ban in the Philippines is the latest episode in a series of regulatory challenges that Binance has faced worldwide. In December, a US court imposed a $2.7 billion fine on Binance and its former CEO, Changpeng ‘CZ’ Zhao, a personal fine of $150 million, following an order from the Commodity Futures Trading Commission (CFTC).
This sanction came after a complaint filed by the CFTC in March 2023, accusing Binance of circumventing federal law by operating an illegal derivatives exchange. As part of a broader agreement with the Department of Justice, the US Department of the Treasury, and the CFTC, CZ agreed to step down as CEO of Binance on November 21.
On the same day, CZ pleaded guilty to multiple civil charges and a criminal charge related to anti-money laundering laws.
CZ is still awaiting sentencing on the money laundering charges, with his conviction postponed until April 30. He is currently released on bail for $175 million.
In several other jurisdictions, Binance is facing regulatory conflicts, such as in Nigeria where two exchange executives were detained.
