According to an official announcement by the Philippines SEC (Securities and Exchange Commission), Binance is not registered in the country and provides services without a license. The document highlights that the exchange has actively run promotional campaigns on social media platforms to attract new clients.
As per the document, the Securities Regulation Code requires that the securities offered have a registration with the Philippine SEC. Moreover, the issuance of the securities must be from an entity registered in the Philippines. Lastly, the issuer needs a secondary license to sell securities to the public.
Also Read: Binance Is Just the Beginning: Warns US CFTC
The Philippines SEC has warned the public to exercise caution before investing via unregistered online platforms. Binance could face criminal charges as per the SEC’s announcement. The platform could be penalized with a maximum fine of Five Million Pesos ($92,282.03) or imprisonment of Twenty-One years or both.
Will Binance exit the Philippines?
The Philippines SEC’s announcement is the latest turn in the ongoing troubles for the exchange. Binance CEO Changpeng Zhao (CZ) recently pleaded guilty to money laundering compliance charges by US authorities. As part of the settlement deal, the exchange will pay a fine of $4.3 billion while CZ steps down as the firm’s head.
As of yet, there is no confirmation about Binance’s immediate plans. Binance could apply for a license and operate legally, or they may choose to exit the Philippines market entirely. However, the SEC’s notice might put another dent in the exchange’s woes.
Also Read: Cristiano Ronaldo Sued for Promoting Binance
Furthermore, football superstar Cristiano Ronaldo faces a lawsuit for promoting the exchange. According to the plaintiffs, Ronaldo participated in the promotion of offering and selling unregistered securities. Ronaldo entered into a multi-year partnership with the exchange to promote a series of his own NFTS (Non-Fungible Tokens).
