Binance crypto exchange is in hot water in the Philippines after the country’s Securities and Exchange Commission (SEC) revealed that the platform has been operating without the necessary approval or license.
In a public warning issued on November 28, the SEC clarified that Binance lacks authorization to sell securities in the Philippines.
According to the SEC, any exchange, including Binance, must register with the agency and provide information about the securities it intends to offer to the public. This includes critical details such as the issuance price and the type of securities.
The Philippines’ Securities Regulation Code (SRC) requires securities issuers to register their services in the country before making investments available to the public.
They must also obtain a secondary license in order to sell securities. The SEC emphasized that Binance has not met these requirements, as it lacks registration and the required license.
The SEC went on to say that Binance has been illegally marketing its services in the Philippines. Those involved in promoting or trading on the Binance platform may face criminal charges under SRC Section 28.
Individuals found guilty of this offense face a fine of up to 5 million Philippine pesos ($90,300), a 21-year prison sentence, or both, according to Section 73 of the SRC.
This development adds to Binance’s growing list of regulatory challenges in various jurisdictions around the world.
