Philippines' SEC Directs Google and Apple to Remove Binance App, Citing Regulatory Violation
Summary:
The Securities and Exchange Commission (SEC) of the Philippines has instructed Google and Apple to eliminate the Binance app from their stores for Filipino users, citing the unlicensed operation of Binance in the country and potential threats to local investors' funds. This follows a previous move where the SEC and the National Telecommunications Commission (NTC) blocked access to Binance websites. The SEC has also previously warned against using Binance due to the platform not having a license to solicit investments or trade securities. Despite current issues, Binance has plans to return to India and has recently received a crypto license in Dubai.
Philippines’ top regulatory body dealing with securities, the Securities and Exchange Commission (SEC), has directed tech giants Google and Apple to eliminate the Binance application from their app outlets for Philippine users. This move was relayed via an April 23rd announcement by the SEC, citing collaboration with the two tech behemoths to get rid of apps affiliated with the leading crypto powerhouse, Binance. Both corporations received individual correspondences on April 19, instructing removal of the applications from regional marketplaces. The SEC justified its actions by stating that Filipino investors' funds were potentially at risk due to continued accessibility to these platforms. SEC’s chairman, Emilio B. Aquino, noted that the sale or provision of unregistered securities to locals and functioning as an "unregistered broker", contravenes the country's securities laws. Removal of Binance apps from digital outlets will stifle "the further spread of its unlawful activities in the country" and avoid potential adverse effects on the domestic economy, he added. This action follows the barring of access to Binance websites on March 25 as a joint measure by SEC and the National Telecommunications Commission (NTC). The SEC has been discouraging public interaction with Binance since November 2023 for its failure to obtain a license for soliciting public investments or executing securities transactions. SEC reiterated on April 8 that a three-month withdrawal period and an extension were already in place subsequent to its official prohibition of Binance. The SEC stated that it wouldn’t validate any fund recovery techniques beyond this. This incident follows a February 21 ban on unregulated crypto trading platforms imposed jointly by the SEC and NTC. Interestingly, Binance had not been affected by the ban then. Binance has had other issues with regulators globally and was recently the target of a class-action lawsuit filed in Canada on April 23 over allegations of breaching local securities laws. In a reversal of fortunes, Binance announced its coming back to India on April 18, after meeting a $2 million penalty for past infringements of local rules. On the same day, it was reported that Binance secured its crypto license in Dubai, or the coveted Virtual Asset Service Provider (VASP), after co-founder Changpeng Zhao relinquished his voting power in the local branch of the exchange.
Published At
4/23/2024 1:04:49 PM
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