- The SEC of the Philippines warned the public against investing in the exchange to encourage the SEC to take action against Binance.
- The SEC’s enforcement of laws like the Securities Regulation Code and the Revised Corporation Code was violated by Binance, according to the letter.
- According to Terry Ridon of Infrawatch PH, this makes the government’s position on the usage of crypto platforms clear.
In response to efforts by the policy think tank Infrawatch PH to persuade the Philippine Securities and Exchanges Commission (SEC) to take action against the exchange, the SEC issued a warning to the general public telling them not to invest in the cryptocurrency exchange Binance.
Oliver Leonardo, director of the SEC, encouraged the public not to invest in the exchange in a letter. The SEC also stated that, based on its preliminary evaluation, Binance is not a registered entity.
Leonardo said that because only registered organizations are eligible to apply for and receive the appropriate licenses to solicit investments, Binance lacks the necessary power and/or license to do so.
The letter emphasized Binance’s violations of SEC-enforced regulations like the Securities Regulation Code and the Revised Corporation Code. The SEC also stated that it invites any victims to come forward and file complaints against the exchange if there are any.
This clarifies the government’s position on the use of crypto platforms, according to Infrawatch PH Convenor Terry Ridon. According to him, “This guidance offers instant protection to Binance users who might have lost their money trading in an unlawful site.”
Binance announced in June that it intended to apply for both a VASP license and an e-money issuer license in the Philippines. Changpeng Zhao, the CEO of Binance, stated that the exchange is considering growing its domestic operations.
A spokesman for the exchange stated that they are willing to communicate with the SEC. They clarified that Binance supports the creation of regulatory frameworks that change in response to innovation.
Infrawatch PH began working against Binance in the same month by contacting the Philippine central bank. The lobbying group also attempted to get Binance banned due to alleged illegal promotions by requesting that the Department of Trade and Industry (DTI) of the nation. The DTI retorted that they were powerless to enforce any judgment against the exchange.