The Philippine Securities and Exchange Commission (SEC) has alerted the public that Binance, a cryptocurrency exchange, is operating in the country without the required approval or license. The SEC issued a warning on November 28, highlighting that Binance lacks authorization to sell or offer securities in the Philippines. The regulatory announcement underscored the obligation for exchanges like Binance to undergo registration, providing comprehensive information about the offered securities, including issuance price, nature of securities, and other pertinent data, before making them available to the public.
In accordance with the Securities Regulation Code (SRC) of the Philippines, it is mandated that securities issuers must be registered within the country before presenting them for investment. Additionally, the issuer is obligated to obtain a secondary license for the sale or offering of securities to the public, as indicated in the statement.
In addition to its operation without the requisite license, the SEC contended that Binance has been unlawfully promoting its services in the Philippines. The regulator cautioned that entities engaged in promoting or trading on Binance could face criminal liability under Section 28 of the Securities Regulation Code (SRC).
This criminal offense is subject to penalties, including a fine of up to 5 million Philippine pesos ($90,300) or imprisonment for 21 years, or both, as outlined in Section 73 of the SRC, as mentioned in the statement.
Binance has not yet responded to Cointelegraph’s request for comment.
This story is still developing, and additional information will be provided as it becomes available.