The Philippines' financial regulatory authority has announced plans to restrict local users from accessing Binance, the largest cryptocurrency exchange globally, due to concerns surrounding the company's unlicensed operations within the country. In a filing made on March 25, the Securities and Exchange Commission (SEC) of the Philippines revealed its collaboration with the National Telecommunications Commission (NTC) to block access to Binance's website and online trading platform.
SEC Chairman Emilio B. Aquino conveyed in a letter addressed to the NTC the regulatory agency's determination that allowing continued public access to Binance's platforms poses significant risks to Filipino investors and jeopardizes the security of their funds. The SEC's accusation against Binance revolves around violations of the Securities Regulation Act, primarily related to the offering of leveraged trading services and investment products like cryptocurrency savings accounts without the requisite licenses.
The ban imposed by the SEC is slated to take effect within three months, affording investors time to liquidate their positions held through Binance. Furthermore, the regulatory body has called upon tech giants Google and Meta to prevent Binance-related advertisements from being displayed to Filipino users on their platforms. This regulatory move by the Philippines marks the latest setback for Binance, as the exchange grapples with intensifying regulatory scrutiny across various jurisdictions globally.
In a significant legal development in December 2023, a U.S. court ruled that Binance must pay $2.7 billion to the Commodity Futures Trading Commission (CFTC), while its former CEO Changpeng "CZ" Zhao was ordered to pay $150 million. This settlement marked the resolution of a protracted lawsuit initiated by the CFTC against Binance in March 2023, alleging violations of federal laws and the operation of an illicit derivatives exchange.
Subsequently, on November 21, CZ agreed to step down from his leadership role at Binance as part of a comprehensive settlement reached with the U.S. Department of Justice, Treasury, and the CFTC. On the same day, Zhao admitted to multiple civil charges and one criminal charge concerning anti-money laundering regulations. Currently, Zhao awaits sentencing on the money laundering charges, with his hearing postponed until April 30, while he remains out on $175 million bail.
