The Philippine Securities and Exchange Commission (SEC) has warned the public about Binance’s operations in the country, stating that they are unregulated and that those promoting their products and services could be penalized.
In a release Released on November 28, the Philippine SEC warned the public that Binance is not authorized to offer or sell securities to Filipinos, nor to offer financial products and services that invite citizens to invest or participate in trading operations within the platform.
The SEC reported that Binance has been promoting, on its platform and social media, different investment products, ranging from leveraged spot trading to futures contracts, cryptocurrency savings accounts, staking services, and even a platform to facilitate access to initial coin offerings (ICOs). However, the regulator stressed that before offering these kinds of financial products to the Philippine public, the platform must register and provide detailed information about them to the Securities and Exchange Commission, something that Binance did not do.
According to the SEC, the exchange has been violating its current securities regulations, so it is requesting the collaboration of the National Telecommunications Commission to block access to the platform within the country.
“The operator of the BINANCE platform is NOT REGISTERED as a corporation in the Philippines and is OPERATING WITHOUT THE NECESSARY LICENSE AND/OR AUTHORIZATION to sell or offer any type of securities to the public”, the SEC warned.
This warning is issued a week after learning of the agreement that the platform has reached with US regulators to pay a $4.300 billion fine for violating Anti-Money Laundering (AML) laws and after the resignation of Changpeng Zhao, who pleaded guilty to all charges against him.
The Philippine SEC orders to block the Binance platform
The SEC in the Philippines intends to minimize the damage that investors and users of the platform may suffer, which is why it has granted a three-month period between the publication of its statement and the local blocking of the Binance platform, in order to give users enough time to withdraw their positions from the exchange.
The SEC in the Philippines has also asked Google and Meta Corporations to block ads promoting Binance’s services in the country.
According to the SEC, those who act as promoters of these services, whether as sellers, brokers, agents, representatives, promoters, recruiters, influencers or facilitators of the platform within the Philippines, including the offering of their products and services through online means, “may be held criminally liable” and punished in accordance with current regulations.
These penalties range from fines of 5 million Philippine pesos, equivalent to about $90.000, to 21 years in prison, the securities regulator said.
Bit2Me, a platform aligned with regulations
In light of the increasing efforts that regulators are making to establish a regulatory framework for the cryptocurrency industry, we can highlight that Bit2Me has always prioritized regulatory compliance to ensure the safety and protection of its customers and users.
Recently, Cointelegraph Research highlighted Bit2Me as One of the most trusted cryptocurrency platforms in the industry. In its report "The New Crypto Exchange Standards", the crypto research division emphasized several of the key points that give the cryptocurrency platform a high score, compared to Binance and other similar ones.
First, because Bit2Me is registered in Spain, rather than a tax haven. The platform is registered with the Bank of Spain as a cryptocurrency service provider and complies with European regulations for the prevention of financial crimes, such as money laundering. Also, Bit2Me is ISO/IEC 27001 and ISO 22301 certified., thus ensuring high safety standards.
Continue reading: Bit2Me is recognized as one of the most reliable crypto platforms, ahead of Binance and Coinbase
