The Philippines’ Securities and Exchange Commission (SEC) has taken a bold move by ordering Google and Apple to remove cryptocurrency exchange Binance from their app stores. The SEC cited concerns about the security of the funds of investing Filipinos due to Binance’s unregistered securities offerings and operating as an unregistered broker, which goes against the country’s securities laws.
SEC Chairperson Emilio Aquino emphasized the necessity of blocking Binance from the app stores to prevent further proliferation of illegal activities in the country and protect the investing public from adverse impacts on the economy. Additionally, the National Telecommunications Commission has already taken steps to block access to Binance websites in the Philippines.
The SEC has issued warnings to the public against using Binance and urges those with investments in the platform to close their positions immediately or transfer their holdings to licensed crypto wallets or exchanges in the Philippines. The regulatory watchdog expressed concerns about Binance’s aggressive promotion on social media to attract funds from Filipinos without obtaining proper licensing.
The action by the Philippines SEC adds to the mounting legal troubles faced by Binance, including the recent appointment of a new CEO, Richard Teng, following a hefty $4.3 billion fine imposed by the U.S. government for alleged money laundering violations. Former CEO Changpeng Zhao has been charged with violating the Bank Secrecy Act and is expected to step down.
Apart from the Philippines regulatory scrutiny, Binance is facing lawsuits from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission over alleged mishandling of customer assets and operating an illegal, unregistered exchange in the U.S. The legal battles have cast a shadow over the future of Binance’s operations globally.
The actions taken by the Philippines’ SEC against Binance highlight the growing regulatory challenges faced by cryptocurrency exchanges around the world. The enforcement measures signal a shift towards stricter oversight and compliance requirements in the digital asset space to protect investors and maintain the integrity of financial markets. Binance’s legal woes serve as a cautionary tale for other players in the industry, emphasizing the importance of adhering to regulations to avoid severe penalties and reputational damage.
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