SEC Philippines warns Binance against unlicensed operation in country
SEC Philippines warns Binance against unlicensed operation in country
The Securities and Exchange Commission of the Philippines (SEC) has warned cryptocurrency exchange Binance that it is not allowed to sell or offer securities to locals because it is operating in the country without the required permit or license.
"According to the Commission's database, platform operator Binance is not registered as a corporation in the Philippines and is operating without the required license and/or authority to sell or offer any form of securities as defined in Section 3.1 of the SRC," the SEC said in a statement.
The SEC notes that an exchange like Binance must apply for registration and provide detailed information about the securities it offers before it can sell them to its users, CoinGape reported.
In addition, Philippine law requires issuers of securities to be registered in the country and also obtain a secondary license to sell or offer securities.
According to the Securities and Exchange Commission, the Binance platform can be accessed through its website, the Google Play Store and the Apple App Store. The platform offers users a variety of investment products, including leveraged spot cryptocurrency trading and futures contracts.
The SEC warns that anyone promoting Binance in the Philippines may face criminal charges and severe penalties under the Securities Regulation Code (SRC).
Under Section 73 of the SRC, violators face a maximum fine of P5 million or imprisonment for twenty-one years, or in some cases, both penalties together.
Such actions by the SEC underscore the potential legal implications of promoting or interacting with unregistered platforms in the Philippines.
However, Binance's launch of a cryptocurrency exchange in Thailand with Gulf Energy Development is also facing regulatory challenges after the company pleaded guilty to violating U.S. law and agreed to a $4.3 billion deal with the DOJ to settle all charges.
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