Binance Faces Regulatory Scrutiny in the Philippines Over Unapproved Operations

Binance, a cryptocurrency exchange, has come under fire from the Philippines Securities and Exchange Commission (SEC), which claims that the site has been operating in the nation without the necessary authorization or license.

On November 28, the Philippines SEC made it known in a statement to the public that Binance is not permitted to offer or sell securities in the country. The statement stressed how platforms like Binance are required by law to register and publish comprehensive details about any securities they wish to make publicly accessible. Details like the issue price, the kind of securities, and other pertinent facts are included in this material.

Legal Compliance Framework in the Philippines

The Philippines’ Securities Regulation Code (SRC) mandates that securities issuers must be registered in the country before making them available for investment. Furthermore, issuers are obligated to secure a secondary license to sell or offer securities to the public. The SEC’s statement explicitly stated, “Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the SRC.”

The SEC also charged Binance with illegally promoting its services in the nation, in addition to not having the necessary license. In accordance with Section 28 of the SRC, the regulator issued a warning to organizations engaged in trading or marketing on Binance that they may be prosecuted. According to Section 73 of the SRC, this violation entails serious consequences, such as fines of up to 5 million Philippine pesos ($90,300) or imprisonment of up to 21 years, or both.

The exchange may need to respond quickly to these issues in order to comply with local laws and preserve its reputation in the Philippines, where Binance is facing regulatory obstacles.