Philippines SEC Warns Against Investing in Binance
- Several regulators have accused Binance of operating without the necessary permits and licenses.
- Binance has seen its services restricted in many Asian countries.
- The crypto exchange has plans to strengthen its ties in the Middle East, where cryptocurrency is becoming a trend.
Days after think tank Infrawatch PH wrote to the Philippines Securities and Exchange Commission on the alleged illegal activities of popular crypto exchange Binance, the regulatory body has now warned the public against investing in the exchange for crypto transactions.
In response to the think tank’s mail, SEC Director Oliver Leonardo released a letter noting that Binance was not a registered corporation and that investments in the platform would only be detrimental to the public. He wrote,
Based on our initial assessment, Binance is not a registered corporation or partnership. Consequently, Binance does not possess the necessary authority and or license to solicit investments as only registered corporations can apply for and be issued the necessary licenses to solicit investments. Considering these circumstances, we caution the public not to invest with Binance.
The SEC further reassured the public of its commitment to move against investment scams in the country. The commission’s letter also accused Binance of violating laws such as the Securities Regulation Code and the Revised Corporation Code and encouraged supposed victims of Binance to file a Notarized Complaint with the department.
Infrawatch PH Convenor Terry Ridon believes the statement by the SEC mirrors its stance against Binance, adding that the advisory offers much-needed protection to users against unlicensed platforms. According to reports, Binance’s representatives have confirmed the exchange’s interest in discussing with the SEC.
Binance and Its Regulatory Concerns
Binance is arguably one of the biggest exchanges in the world, providing services in several countries in the Americas, Africa, Europe, Asia, etc. However, the crypto exchange has had to shut down its activities in other regions due to regulatory policies.
Binance reportedly closed down the accounts of many users residing in nations where its services had been banned, including people from Serbia, Iran, Bosnia, Myanmar, China, and Japan, among other countries. Some of these nations accused the crypto service provider of operating without a license and regulatory clearance.
Regulators in some of the restricted regions blamed Binance for not taking the necessary steps to alert crypto users of insider trading and other irregularities in the industry. When asked to comment on some of the allegations against it, a Binance spokesperson said:
We do not comment on specific matters with regulatory and law enforcement authorities. However, as a matter of policy our general approach is to cooperate with investigations wherever possible.
With regulators around the world increasing their drive to regulate the industry, Binance might find itself in more legal battles with authorities around the world and possibly see its operations restricted in other regions. However, the trading platform has prioritized increasing its relationship with regulators around the world and obtained permits in regions like France, Italy, and Dubai.