Philippine SEC Head Clarifies Binance Ban Timeline and Warns Unregistered Exchanges

The head of the Philippine Securities and Exchange Commission (SEC), Kelvin Lee, clarified the Binance ban at a panel discussion on December 13. He clarified the misconception that had been going around the internet in the wake of the regulator’s November 28 recommendation to the cryptocurrency exchange by stressing that the ban on Binance will take effect three months after the advisory was sent.

In response to questions, Lee stated that a one-month ban—or perhaps even a one-week transition period—was first suggested. But in light of the impending Christmas vacation, he chose to extend the deadline to three months. He stated, “Not to make it hard for Filipino investors during that time.”

OctaFX and MiTrade Also Face Bans

Lee said that, in addition to Binance, two other exchanges that were noted for engaging in unregistered activities, OctaFX and MiTrade, will also be prohibited three months following the issuance of warnings. The regional SEC announced that it had a sizable list of unregistered exchanges and that more will progressively surface. They’re taking a “wait-and-see” stance to see whether these exchanges decide to register after seeing what Binance has been through.

While acknowledging that the Binance ban has drawn criticism, Lee pointed out that unregistered exchanges may appear “cheaper” due to the fact that they have not paid the expenses of registration compliance. He asked local investors to interact with registered firms and underlined the value of investor protection. As of right now, the Philippines has 17 registered virtual asset service providers (VASPs) that provide fiat-to-crypto services.

“At the end of the day, it’s about registration. At the end of the day, it’s about consumer protection. Work with the registered entities.”

The cryptocurrency world is keenly observing the Philippine SEC’s hard position against unregistered exchanges to determine how it will affect the regulatory environment as a whole.