Philippines to Block Binance Access, Citing Unlicensed Operations Amid Ongoing Global Scrutiny
Summary:
The Philippines' financial regulators plan to block local access to Binance, a leading global cryptocurrency exchange, for operating without required licenses. The ban, effective within three months, has also spurred requests for Google and Meta to restrict Binance-related advertisements. This move is the latest in a series of regulatory challenges for Binance globally. Additionally, its former CEO, Changpeng "CZ" Zhao, awaits sentencing related to money laundering charges.
Financial authorities in the Philippines are set to bar local access to Binance, a leading global cryptocurrency exchange, due to the company's unregulated activities in the nation. The SEC of the Philippines partnered with the NTC to restrict access to Binance's web portal and digital trading platform, as articulated in an SEC notice dated March 25. SEC Chair Emilio B. Aquino expressed concern over public access to these platforms, warning that unregulated use could jeopardize the safety of Filipino investor funds.
The financial regulatory body of Philippines accuses Binance of operating illegally, offering leveraged trading and cryptocurrency savings accounts without obtaining the necessary permits, which contravenes the Securities Regulation Code. The imposed ban will come into effect within three months, allowing investors sufficient time to withdraw their stakes from Binance. The SEC has furthermore requested Google and Meta to prevent Binance-related ads from being displayed for Filipino users.
This latest injunction in the Philippines is another regulatory setback for Binance, already facing heightened worldwide regulatory scrutiny. Most notably, in December, an American court directed Binance to pay $2.7 billion, and its former CEO, Changpeng "CZ" Zhao, to pay $150 million as part of a settlement with the Commodity Futures Trading Commission (CFTC). This followed a lawsuit filed by the CFTC against Binance in March 2023, alleging evasion of federal law and illegal operation of a derivatives exchange. On November 21, Zhao agreed to step down from his executive role at Binance, as part of larger settlement with various U.S. institutions including the Department of Justice and the Treasury Department. Zhao subsequently pleaded guilty to a range of civil and criminal charges linked to Anti-Money Laundering laws, but his sentencing for the money-laundering charges, originally set for April 30, has been postponed. Currently, Zhao is out on a bail bond of $175 million.
In related news, a recent decrease in airdrop allocation for DED memecoin has sparked public outrage among the digital currency community.
Published At
3/25/2024 2:50:58 PM
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