The Securities and Exchange Commission (SEC) has effectively banished the cryptocurrency giant Binance from the Philippines as its online presence has been blocked by the National Telecommunications Commission (NTC).
The SEC has determined that Binance’s continued online presence in websites or apps “poses a threat to the security of the funds of investing Filipinos” and convinced the NTC to put an end to its operations.
“The public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos,” SEC chairman Emilio B. Aquino told the NTC in the letter-request seen by financial reporters.
Binance is a trading platform for financial instruments and investment products like futures and option contracts, cryptocurrency savings accounts, cryptocurrency staking services, even so-called initial coin offerings.
Touted as the largest cryptocurrency website in the world, Binance trades average USD65 billion daily in more than 402 cryptocurrencies with a membership base of over 183 million, according to its website.
It actively pursued promotional campaigns on social media urging Filipinos to use its investment and trading platforms. An app version is downloadable on Google Playstore and Apple App Store.
However, Binance neither secured a SEC license to solicit investments from the public nor a permit to create or operate an exchange for the buying and selling of securities, as required by Republic Act 8799 or the Securities Regulation Code (SRC).
The SEC warned the public against investing in and using Binance as it sought to block its website and other online presence in the Philippines as early as November last year.
In considering the size and volume of Binance’s Philippine operations, the SEC said the investing public should have enough time to exit the platform and reposition their portfolio in favor of authorized investment products and platforms.
