Cryptocurrency exchange Binance has come under scrutiny in the Philippines as the local securities regulator, the Securities and Exchange Commission (SEC), revealed that the platform has been operating without the necessary approval or license. In a warning issued on November 28, the SEC stated that Binance is not authorized to sell or offer securities in the country.
The SEC emphasized that platforms like Binance are required to apply for registration, providing detailed information about the securities they offer before making them available to the public. This information should include the issuance price, the nature of the securities, and other relevant data.
According to the Philippines’ Securities Regulation Code (SRC), securities issuers must be registered in the country before being offered for investment. Additionally, issuers need to obtain a secondary license to sell or offer securities to the public. The SEC’s statement highlighted that Binance is not registered as a corporation in the Philippines and operates without the necessary license to sell or offer any form of securities, as defined by the SRC.
In addition to the lack of necessary licensing, the SEC accused Binance of unlawfully promoting its services in the Philippines. The regulator warned that entities involved in promoting or trading on Binance could face criminal liability under Section 28 of the SRC. This criminal offense carries a penalty of a fine of up to 5 million Philippine pesos ($90,300), imprisonment of 21 years, or both, according to Section 73 of the SRC.
This development raises concerns for individuals and entities engaged with Binance in the Philippines, as the SEC takes a strong stance against unauthorized operations in the securities space.
