- Philippine SEC warns Binance operates without a license.
- Binance lacks required securities offering registration in the Philippines.
- Violations may lead to fines or imprisonment for Binance.
The Securities and Exchange Commission (SEC) of the Philippines has announced that the cryptocurrency exchange Binance has been conducting business within the country without legal permission. On November 28, the SEC issued a public warning stating that Binance lacks the required license to engage in the sale or offering of securities in the Philippines.
As stated in the release, an exchange must register and disclose comprehensive information about the assets it intends to sell to the public. This detailed information includes the offering price, the type of security, and additional relevant details.
Challenges Keep Mounting for Binance
Issuers of securities are required to register in the Philippines prior to offering their products for investment, as mandated by the Securities Regulation Code (SRC). The statement further specifies that issuers must obtain a secondary license to sell or offer securities to the public.
The Securities and Exchange Commission (SEC) stated that Binance has been unlawfully promoting its services within the country and functioning without the necessary authorization. The regulatory body has released a notice cautioning that certain entities could be subject to prosecution under Section 28 of the Securities Regulation Code (SRC) for endorsing or conducting transactions on Binance.
Furthermore, as per Section 73 of the SRC, the declaration indicates that the offense is subject to a penalty of not more than 5 million Philippine pesos (equivalent to $90,300) or, imprisonment for a term not exceeding 21 years, or both.
A few days ago, Changpeng Zhao, who is the CEO of Binance, stepped down from his position following his admission of guilt in a United States courtroom for violating U.S. Anti-Money Laundering regulations. In September 2023, the Securities and Exchange Commissions of both the Philippines and the United States collaborated to combat fraud in the cryptocurrency sector.
