In late November, the Philippines’ financial regulators issued a warning to Binance, the world’s largest crypto exchange, for operating without a license in the country. Now, with the end of February approaching, officials are evaluating whether to block Binance’s operations, raising concerns among the Filipino crypto community.
The Securities and Exchange Commission (SEC) of the Philippines is currently assessing the potential ramifications of banning Binance, including its impact on the funds of Filipino account holders. The SEC spokesperson stated that they are collaborating with other government agencies to formulate procedures for restraining the operations of unregistered entities like Binance.
Despite the looming deadline, Binance has not publicly addressed the issue, leaving the Filipino crypto community uncertain about the SEC’s decision. Attempts to reach out to the SEC for clarification have not yielded any responses, further adding to the uncertainty.
The potential ban on Binance comes at a turbulent time for the exchange, following its historic guilty plea in the US for violating banking laws and subsequent penalties amounting to $4.3 billion. Despite promises from the newly appointed CEO, Richard Teng, to enhance regulatory compliance, Binance has yet to address the concerns raised by Filipino regulators.
The SEC faulted Binance for utilizing various channels, including influencers and advertisements, to promote its services in the Philippines. The agency warned promoters of potential legal consequences, including hefty fines and imprisonment. Additionally, the SEC requested Google and Meta to halt Binance advertisements targeted at Filipino users.
If the ban materializes, it is expected to take effect by the end of February, potentially impacting the vibrant crypto community in the Philippines. Binance’s entry into the Filipino market in 2019 disrupted the local landscape, offering lower transaction fees and attracting a significant user base. However, concerns have been raised about unlicensed vendors operating on Binance’s platform and the competitive disadvantage faced by licensed local exchanges.
Despite the uncertainties surrounding Binance’s future in the Philippines, local players remain optimistic about the potential for improved market conditions and regulatory compliance in the crypto industry.