The Philippines Securities and Exchange Commission (SEC) recently issued a cautionary advisory shedding light on Binance’s operations within the country. In the announcement made on November 28th, the regulator expressed concerns, stating, “Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority.”
While the SEC acknowledged Binance’s registration in other countries, it highlighted the fact that the cryptocurrency exchange is not registered in the Philippines and has not fulfilled the requirements for platforms intending to offer securities under the jurisdiction of the country. This raises significant legal and regulatory concerns.
Alongside the warning, the SEC outlined the potential penalties for individuals or entities promoting Binance within the Philippines. These penalties include up to 21 years of imprisonment and fines of up to 5,000,000 Pesos (approximately $90,000). This stern stance emphasizes the severity of the situation and the importance of adhering to local regulations.
The cautionary advisory from the Philippines SEC adds to the growing list of regulatory challenges faced by Binance over the past year. The cryptocurrency exchange has encountered increased regulatory scrutiny across multiple jurisdictions, including the United States, the United Kingdom, Nigeria, and several European countries.
In the United States, Binance confronted several federal agencies, such as the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC), leading to a colossal $4 billion settlement. Additionally, Binance’s founder, Changpeng ‘CZ’ Zhao, stepped down as CEO after pleading guilty to money laundering charges. The U.S. Securities and Exchange Commission (SEC) has also initiated legal actions against the exchange.
On the other side of the Atlantic, Binance voluntarily exited several European jurisdictions, including Germany, the Netherlands, Austria, and Cyprus. Meanwhile, in the United Kingdom, Binance had to cease operations altogether due to regulatory concerns.
The troubles for Binance do not end there. In addition to legal actions from regulators, the exchange has also faced a class-action lawsuit initiated by disgruntled users. These users allege that their financial losses were a result of Cristiano Ronaldo’s endorsement of the exchange. It is worth noting that Ronaldo had promoted Binance as a brand ambassador.
The warning issued by the Philippines Securities and Exchange Commission serves as a clear indication that Binance’s operations within the country are not in compliance with local regulations. With potential hefty penalties for individuals or entities promoting Binance and an ever-increasing list of regulatory challenges worldwide, it is imperative for investors to exercise caution before engaging with the exchange’s offerings. As the cryptocurrency industry increasingly faces regulatory scrutiny, Binance’s ongoing troubles underscore the importance of adherence to legal and licensing requirements to maintain the trust of regulators and investors alike.