The Philippines’ Securities and Exchange Commission (SEC) is poised to restrict access to Binance, the world’s largest cryptocurrency trading platform, by early next year. This move is part of a broader crackdown on unlicensed online trading platforms operating in the country.
The SEC’s decision to block Binance stems from the platform’s lack of registration in the Philippines. As a result, Binance is not authorized to sell or offer securities to the public within the nation. The SEC has highlighted Binance’s active promotional campaigns on social media, attracting Filipino investors to use its platforms for investment and trading activities. Notably, Binance’s app is currently available for download on both Google Playstore and Apple App Store.
To protect investors, the SEC gives them a three-month window to withdraw their investments from Binance. After this period, access to the platform will be blocked. SEC Commissioner Kelvin Lester Lee emphasized the importance of investor safety, noting that entities like Binance had multiple opportunities over the years to register but chose not to, raising concerns for the regulator.
Binance, founded in 2017 in China, has since moved its headquarters multiple times, currently operating without an official company headquarters. Known for its vast daily trading volume, Binance facilitates trading cryptocurrencies like bitcoin, ether, dogecoin, and over 350 others. Despite its success, with profits reported between $800 million and $1 billion in 2020, Binance has faced legal and regulatory challenges in several countries, including Germany, Thailand, Canada, India, Australia, Japan, Nigeria, and Belgium. Recently, Binance and its CEO pleaded guilty to money laundering charges in the U.S., resulting in a $4.3 billion fine.
The Philippines joins this list of countries scrutinizing Binance’s operations. In addition to targeting Binance, the SEC is also working with tech giants like Google and Meta to prohibit online advertising from Binance in the Philippines. The regulator has issued advisories against other similar entities, such as OctaFX/OctaTrading and MiTrade, to regulate online entities soliciting investments without the necessary licenses.
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