Key Takeaways
- The Securities and Exchange Commission (SEC) of the Philippines has issued a warning to the general public not to invest with Binance
- the SEC urged investor victims who Binance operations may have harmed to report specific violations of the amended corporation code, the securities regulation code, and other relevant laws.
In response to a request to outlaw Binance in the Philippines by think tank Infrawatch PH, the Securities and Exchange Commission (SEC) of the Philippines has issued a warning to the general public not to invest with Binance, the largest cryptocurrency exchange in the world by trading volume.
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Binance Is Not A Registered Corporation, Philippines’ SEC Warns investors
Binance is not a registered corporation or partnership, according to a letter the Philippine SEC sent in response to Infrawatch PH and shared with Forkast. The letter explained that while only registered businesses are eligible to apply for and receive the requisite licenses to solicit investments, the company "does not hold the appropriate authority and the authorization to do so."
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Additionally, the SEC urged investor victims who Binance operations may have harmed to report specific violations of the amended corporation code, the securities regulation code, and other relevant laws.
Infrawatch PH had requested that the Philippine central bank and the Department of Trade and Industry investigate cryptocurrency exchange operations and consider outlawing the exchange in the nation. In an email, a representative for Binance stated that the exchange is attempting to obtain VASP and EMI licenses in the Philippines to " contribute to the Philippines' growing robust web3 and blockchain ecosystem."
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At the time of publication, Forkast had not yet heard back from the Philippine SEC after contacting them for more information. In several regions, Binance has encountered regulatory difficulties.
The Dutch central bank penalized the corporation last month with a punishment of 3.3 million euros ($3.4 million). The CEO and creator of Binance, Changpeng Zhao, announced on Monday that the exchange has invested more than $1 billion in compliance initiatives. Let us know your opinions in the comment section below.
