Lynn Johannson, Advisor, Sustainability and ESG
January 4th, 2024
Lynn Johannson, President of E2 Management Corporation and Catalyst for THE Collaboration
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Philippines SEC Blocks Binance for Failing to Secure License
Binance | March 27, 2024
Image: SEC Philippines Blocks Binance, press release
Philippines SEC blocks Binance, citing unlicensed operations and investor risk
After threatening for months, the Philippines Securities and Exchange Commission (SEC) has now mandated the blocking of Binance for failing to secure the necessary operational licenses. The ban will be implemented within three months, providing investors with a window to exit their positions on Binance. This grace period reflects the SEC's intention to minimize disruption for Filipino investors engaged with the platform.
See: Binance Executive Escapes from Custody in Nigeria
- The Philippines SEC, with assistance from the National Telecommunications Commission, has ordered the blockage of Binance due to its lack of a proper license to operate within the country - view press release.
- SEC Chair Emilio B. Aquino highlighted the risk to Filipino investors' funds as a primary concern, pointing out Binance's unauthorized solicitation of investments and operation of a securities exchange platform.
- Since 2023, the SEC has been in communication with Binance, urging compliance and warning the public about potential actions against the platform. Despite these efforts, Binance failed to obtain the necessary licenses, leading to the current blockade.
Digital Assets in the Philippines
The Philippines has shown a generally positive stance towards cryptocurrencies, recognizing the growing interest among Filipinos in digital assets and the potential benefits they offer. The government has taken steps to regulate the cryptocurrency sector to ensure investor protection, market integrity, and compliance with financial regulations. This includes efforts to tax profits from crypto sales at a rate of 15 percent, indicating an attempt to integrate cryptocurrency transactions into the formal economy while ensuring that they contribute to the nation's revenue.
See: OSC Pursues Binance Investigation, Unfazed by Crypto Exchange’s Departure from Canada
However, the government also makes it clear that cryptocurrencies are not recognized as legal tender in the Philippines. Its a cautious approach that welcomes innovation and investment opportunities presented by cryptocurrencies, while implementing measures to protect investors and prevent financial crimes.
Conclusion
This move, while specific in its immediate impact on Binance and its users, reflects the Philippines' nuanced stance on crypto: open to innovation and the economic opportunities they present, yet commitment to ensure a secure, regulated, and compliant digital asset environment.
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