Binance Ban in Philippines Prompts Concern over Increased Trading Fees and Crypto Options
Summary:
Following the recent Binance ban in the Philippines, local traders face increased trading fees and limited crypto options. The ban was implemented by the Philippine Securities and Exchange Commission (SEC) due to Binance's failure to register and comply with local regulations. While this ban may contribute to the growth of domestic exchanges and economy, it could also result in higher trading costs and fewer crypto choices. Industry leaders have highlighted the incident as a reminder of the importance of regulatory compliance and the necessity for exchanges to register appropriately.
Binance, the popular crypto exchange, has been booted out of the Philippines, leaving local traders grappling with increased trading costs and a smaller selection of cryptocurrencies. This development follows the Philippine Securities and Exchange Commission (SEC) issuing a three-month warning of a Binance ban on December 14, stating that the platform failed to register and adhere to local regulations. Internet providers were instructed to block access to the exchange from March 25, and Binance’s app was removed from Apple and Google's stores at the SEC's command on April 23.
Commenting on the impact of the ban, Ethan Rose, CEO of Bitcoin services provider Pouch, indicated that it shields Filipino traders from potential harm. Rose flagged previous financial misdeeds of ex-Binance CEO Changpeng Zhao as a sign of potential risks, stating "A ban on Binance safeguards Filipinos from encountering corrupt entities." Rose also suggested that the ban may promote local economic growth by stimulating increased use of domestic exchanges. There is, however, potential for a downside as higher fees and reduced cryptocurrency choices might result from using local platforms.
Elsewhere, Arlone Polo Abello, chief executive of crypto education firm Global Miranda Miner Group, discounted the notion of the ban being a significant blow to the industry. Instead, Abello saw it as a reminder of the need for exchanges like Binance to properly register for operation. Abello also criticized Binance's lack of communication with Filipino traders on its operational status.
Echoing this sentiment, Jay Ricky Villarante, CEO of over-the-counter trading firm Moneybees, views the ban as an emphasis on the criticality of regulatory compliance for stable, long-term operation in the cryptocurrency sector. According to Villarante, the precedent set by the Philippines SEC could provide a clearer regulatory framework for the local crypto market, promoting confidence among market participants and nurturing inspired industry innovation. Villarante labeled the development as "significant," acknowledging the presence of both positive and negative implications for the country's cryptocurrency community.
Published At
4/29/2024 2:24:57 PM
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