The Securities and Exchange Commission (SEC) of the Philippines has issued a warning regarding Binance, highlighting the cryptocurrency exchange’s lack of proper registration and operating without necessary licenses or authorization in the country.
The SEC’s advisory further emphasizes the illegality of Binance’s promotional activities targeting Filipino investors through social media platforms, citing violations of the Securities Regulation Code.
Legal Repercussions and Penalties On Binance Endorsement
The SEC cautioned individuals endorsing Binance in the Philippines about potential legal consequences under the Securities Regulation Code. In addition, violators could face severe penalties including a maximum fine of five million pesos (approximately $90,260), imprisonment for up to 21 years, or a combination of both, as outlined by the SEC’s advisory.
Restrictions and Grace Period
Responding to the SEC’s warning, reports suggest imminent restrictions on access to Binance’s website and apps in the Philippines within the next three months. Moreover, this action aims to provide local users with a grace period to liquidate and withdraw their assets from the platform.
Additionally, the SEC has reached out to tech giants Google and Meta urging them to prevent online advertisements for Binance within the country.
Personnel Changes at Binance
Amidst this regulatory development, reports have surfaced regarding the departure of Kenneth Stern, the former general manager of Binance in the Philippines, according to his LinkedIn profile. However, a Binance spokesperson clarified that Stern had left the company in July, preceding the SEC’s warning.
The SEC’s cautionary stance against Binance in the Philippines highlights the regulatory scrutiny faced by the cryptocurrency exchange for operating without proper authorization. Further, the warning underscores the legal risks for individuals endorsing Binance’s activities in the country.
Simultaneously, the reported actions to restrict access and outreach by Binance within the Philippines indicate efforts to ensure compliance with local regulations and protect investors from potential risks associated with unregistered entities in the cryptocurrency space.