The Philippines Securities and Exchange Commission (SEC) issued a warning on Nov. 28, revealing that cryptocurrency exchange Binance has been operating without the required approval or license in the country. The SEC emphasized that Binance is not authorized to sell or offer securities in the Philippines.
According to the Securities Regulation Code (SRC), exchanges like Binance must register and provide detailed information about securities before making them available to the public. This information includes issuance price, nature of securities, and other relevant data.
The SEC accused Binance of not only lacking the necessary license but also engaging in unauthorized promotion of its services within the country. The regulator cautioned that entities involved in promoting or trading on Binance may face criminal liability under Section 28 of the SRC.
This offense carries a penalty of up to 5 million Philippine pesos ($90,300) in fines or imprisonment of 21 years, or both, under Section 73 of the SRC.
The warning highlights the regulatory scrutiny faced by cryptocurrency exchanges and the legal consequences for operating without proper authorization in different jurisdictions.
Binance faces regulatory setbacks globally as the UK's Financial Conduct Authority (FCA) bans its involvement in regulated activities, impacting services for UK residents. In Japan, the Financial Services Agency (FSA) issued a warning for operating without proper registration.
Binance ceased operations in Ontario, Canada, due to non-compliance with local securities laws. The Monetary Authority of Singapore restricts the platform for Singaporean investors. These actions signify intensified scrutiny on Binance, reflecting a broader trend of regulatory oversight in the cryptocurrency industry worldwide.
Binance encounters a series of regulatory challenges, with the Philippines SEC warning against unauthorized operations, focusing on legal consequences. The global landscape sees the UK FCA ban, FSA warning in Japan, Canada closure, and Singapore restrictions on Binance. These incidents highlight increased regulatory scrutiny and highlight how important it is for businesses in the developing cryptocurrency market to be flexible and compliant.
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