Philippines Cracks Down on Unlicensed Binance

Philippines Cracks Down on Unlicensed Binance

Philippines Cracks Down on Unlicensed Binance

The Philippines SEC has imposed limitations on local users accessing Binance due to concerns about illegal activities.

The Securities and Exchange Commission (SEC) of the Philippines has established limitations to limit the number of local users who can access the Binance cryptocurrency exchange. The illegal acts Binance is engaging in within the region have raised concerns, prompting the SEC to take this action.

Philippines Restricts Binance

Philippines SEC released a publication on March 25th, referring to the petition it had submitted to the National Telecommunications Commission (NTC) to restrict users in the Philippines from accessing the website and trading platforms of Binance.

Emilio B. Aquino, the Chairperson of the Securities and Exchange Commission, made a statement regarding the move, stating that it was necessary to protect Filipino investors.

He also mentioned that the fact that the platform is still operational poses a risk of losing its assets. The Securities and Exchange Commission has also filed a complaint against Binance for offering investment goods, such as leveraged trading services and crypto savings services, without meeting the necessary qualifications.

Following the Securities Regulation Code, the regulator asserts that such practices are in violation. The Securities and Exchange Commission (SEC) has advised a three-month deadline for users to liquidate their Binance investments to protect investors.

Furthermore, the Securities and Exchange Commission (SEC) has asked major technology companies such as Google and Meta to refrain from displaying Binance advertisements to individuals in the Philippines.

This will make the activities of the cryptocurrency exchange in the Philippines more restricted. This prohibition is only one of the many regulatory hurdles that Binance must overcome, the cryptocurrency exchange is currently under the scrutiny of authorities worldwide.

There was a significant legal event that took place in December 2023 when a judge in the United States declared that Binance must pay $2.7 billion to the Commodity Futures Trading Commission (CFTC) and that Changpeng “CZ” Zhao, the former CEO of Binance, must pay $150 million to the CFTC.

After a lengthy legal struggle that began in March 2023 when the Commodity Futures Trading Commission (CFTC) accused Binance of violating federal laws and operating an unauthorized derivatives exchange in the United States, the verdict ended the conflict.

As a result of a deal with the United States Department of Justice, the Treasury Department, and the Commodity Futures Trading Commission (CFTC), he resigned from his position as the leader of CZ in November, ending his reign.

On that specific day, Zhao entered a guilty plea to several civil charges and one criminal offense related to anti-money laundering rules.

His sentencing in connection with money laundering charges was also delayed until the 30th of April, at the same interval. We have set a bond of $175 million to ensure his continued freedom.

These instances demonstrate the intense regulatory scrutiny Binance has faced, affecting its operations and strategy worldwide.

Binance completely withdrew from the Russian market last year due to increasing regulatory demands. As part of the exit strategy, the company planned to sell its business in Russia to CommEX, another digital asset exchange.

Binance made the decision after taking into account several factors, including the legal and regulatory challenges it faced in Russia. The need to streamline Binance’s global operations and focus on international regions where it could achieve tremendous success motivated Binance’s decision to sell its Russian office.

The transfer marks a significant change for Binance customers in Russia, as they will now engage in cryptocurrency trading through CommEX or other exchange platforms.

This action is representative of a few problems that bitcoin exchanges are encountering due to the complicated regulatory frameworks in several nations.

In the aftermath of the acquisition, CommEX has taken the initiative to showcase its unique operational model, independent of Binance’s. This serves to establish a distinct separation between the two companies. 

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