Philippine Securities and Exchange Commission (SEC) Chairman Kelvin Lee addressed the Binance ban during a panel discussion on December 13, clarifying that the ban will become effective three months after the issuance of the recommendation.
Lee highlighted the widespread confusion regarding the ban after the regulator's warning to Binance on November 28 for operating without a license, as reported by local news outlet BitPinas.
During the discussion, Lee was prompted to provide clarity on the matter and emphasized that the ban's implementation "should be within three months from the date of issuance," which he specified as November 29.
He indicated the possibility of extending the period based on feedback received. Initially, suggestions were for a shorter timeframe, possibly a month or even a week-long transition period. However, Lee opted for a longer duration due to the approaching Christmas holidays, urging consideration for Filipino investors during that period to avoid complexities.
Lee mentioned that apart from Binance, two other exchanges—OctaFX and MiTrade—received advisories for operating as unregistered businesses and would also face bans within the three-month period.
The local SEC highlighted having a comprehensive list of unregistered exchanges that will gradually come to light. Following the action taken against Binance, the regulator adopted a "wait and see" approach to determine if the exchange would comply with the registration requirements. Lee addressed criticism regarding the Binance ban being "cheaper" than registered exchanges, attributing this to the lack of compliance and registration costs borne by unregistered entities compared to registered ones.
He emphasized the importance of local investors engaging with registered entities for investment purposes. Lee noted that there are currently 17 virtual asset service providers registered in the Philippines offering fiat-to-crypto services, stressing the significance of registration in ensuring consumer protection and compliance.
