The Securities and Exchange Commission of Philippines released, on November 28, a document in which it informed that the largest cryptocurrency exchange, the Binance, is not registered and does not have an operating license in the country.
In its official statement, the regulator highlighted:
“This is to inform the public that the online cryptocurrency exchange Binance is not authorized to sell or offer securities to the public in the Philippines. Based on reports obtained and information collected by the Commission, Binance has been active in employing promotional campaigns on various social media platforms to attract Filipinos to engage in investment and trading activities using its platform,” stated.
The regulator highlighted in the document the exchange's statement that the operation of its services in the country does not comply with the regulations. The Commission highlighted Binance's lack of compliance with current laws in the Philippines.
“Based on the Commission's database, the operator of the Binância platform is not registered as a corporation in the Philippines and operates without necessary license and/or authority to sell or offer any form of securities as defined in Section 3.1 of the Securities Regulation Code (SRC), to engage in the business of buying or selling securities or as a broker or dealer as provided in Section 28 of the SRC, or to create or operate an exchange for buying and selling securities as provided in Sec. 32 do SRC”.
The regulator advised users to exercise “caution” when investing in “this type of unregistered online investment platform and its representatives”. The Commission reiterated the penalty for those who facilitate or influence investment on unregulated platforms can result in a maximum fine of five million pesos or imprisonment for twenty-one years.