SEC of the Philippines Stands Against Binance:
- According to the regulator, Binance operates without the required license in the Philippines.
- The SEC of the Philippines warns against unauthorized activities by Binance.
- Entities involved in promoting or trading on Binance face imprisonment of up to 21 years.
Binance is far from out of trouble. In fact, the cryptocurrency exchange Binance is allegedly operating in the Philippines without the necessary approval or license, and it has been illegally promoting its services in the country, as reported by the local regulator, the Securities and Exchange Commission of the Philippines (SEC).
“Binance is not registered as a company in the Philippines and operates without the license and/or authority required to sell or offer any form of securities as defined in Section 3.1 of the SRC.“
The country’s regulators stated
The lack of registration of Binance as a corporation in the Philippines and its operation without a license to sell or offer securities highlight a major challenge for regulators.
According to the Securities Regulation Code (SRC), it is mandatory for an entity like Binance to go through a registration process in compliance with the country’s regulations, as well as to provide information about the securities it offers before making them accessible to the public.
Significant Consequences for Binance
The SEC has warned that any entity involved in promoting or trading on Binance could face criminal liability, with penalties that may include a fine of up to 5 million Philippine pesos (approximately $90,300) or 21 years of imprisonment.