Binance Accused of Operating Without Required Licenses in the Philippines by SEC
Summary:
In a public warning, the Philippines' Securities and Exchange Commission (SEC) has stated that Binance, a leading cryptocurrency exchange, has been conducting operations within the country without proper authorization or licenses. The SEC emphasizes that Binance does not have the necessary permits to offer or sell securities in the Philippines and has unlawfully promoted its services. Entities involved in promoting or trading on Binance could face significant fines or prison time. So far, Binance has not responded to these claims.
The Philippines' Securities and Exchange Commission (SEC) claims that Binance, the world-renowned cryptocurrency exchange, has been conducting business on its shores without the appropriate licenses or authorization. In a public warning issued on November 28th, the SEC stated that Binance does not have the necessary permits to either sell or offer securities within the nation. The regulator further clarified that before any exchange like Binance can do so, it must undergo registration and furnish comprehensive details about the securities on offer, including their issuance price, nature, and other key details.
The country’s Securities Regulation Code (SRC) explicitly demands that issuers of securities have registered status in the country prior to offering them up as investment options. Additionally, there is a requirement to secure a secondary license in order to make these offerings public. The regulator expanded on this, stating, “From the data we hold in the Commission's database, Binance’s platform operator is neither registered as a corporation in the Philippines nor does it have the necessary license or the authority to sell or offer any variety of securities as defined under SRC’s Section 3.1.”
Binance, the SEC further argues, has been unlawfully advertising its services within the country. The warning issued by the regulatory body implies that any entities partaking in trading or promotion activities on Binance may face criminal charges under SRC’s Section 28. The punishment for such an offense could involve a fine of up to 5 million Philippine pesos (approximately $90,300), or up to 21 years in prison, or potentially both, as per Section 73 of the SRC.
As of yet, Binance has not issued a response to Cointelegraph’s request for a statement. This story is still unfolding, so more details will be provided as they emerge.
Expert doc: Safeguarding your crypto assets in a fluctuating market — Conversations with Bitcoin gurus and specialists.
Published At
11/29/2023 8:34:51 AM
Disclaimer: Algoine does not endorse any content or product on this page. Readers should conduct their own research before taking any actions related to the asset, company, or any information in this article and assume full responsibility for their decisions. This article should not be considered as investment advice. Our news is prepared with AI support.
Do you suspect this content may be misleading, incomplete, or inappropriate in any way, requiring modification or removal?
We appreciate your report.