SEC blocks crypto exchange Binance in Philippines

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The Securities and Exchange Commission (SEC) has imposed a ban on cryptocurrency exchange Binance and its operations in the Philippines.

With the ban, the public will not be able to access Binance's website and its applications while inside the country, the SEC said in an advisory dated Nov. 28.

The removal of access in the Philippines is expected to take effect within three months after the issuance of the advisory in order to give Filipino investors who have holdings in Binance to close their positions and take out their investments.

The SEC said Binance is not authorized to sell or offer securities in the Philippines. Thus, it warned the public against using the online cryptocurrency platform.

This is pursuant to Republic Act 8799 or the Securities Regulation Code (SRC), which provides that entities seeking to engage in the business of trading securities must first secure a secondary license with the SEC.

Binance is a platform for trading financial instruments. It offers investment products, including spot trading using leverage, futures contracts, option contracts, cryptocurrency savings accounts, cryptocurrency staking services, and a platform for initial coin offerings.

'Based on the commission's database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the (SRC) to engage in the business of buying or selling securities or as a broker or dealer as provided under Section 28 of the SRC, or to create or operate an exchange for the buying and selling of securities as provided under Section 32 of the SRC,' the SEC said in its advisory.

According to the SEC's investigation, Binance has been actively employing promotional campaigns on social media to attract Filipinos to engage in investment and trading activities using its platforms.

An app version is also currently downloadable on Google Playstore and the Apple App Store.

Following the issuance of the advisory, the SEC will request assistance from the National Telecommunication Commission and the Department of Information and Communications Technology to block access to Binance in the Philippines.

Additionally, the SEC has requested Google and Meta, the operator of Facebook, to prohibit online advertisements from Binance appearing to users in the Philippines.

The SEC recently issued advisories against similar entities, such as Octa Trading and MiTrade, as it cracks down on online entities soliciting investments from the public without the necessary licenses.