Binance Regulatory Ripples: Uncharted Waters in the Philippines

Binance, the prominent cryptocurrency exchange, has found itself under scrutiny for allegedly conducting operations in the Philippines without obtaining the necessary approval or license, as pointed out by the local securities regulator.

In a noteworthy development on November 28, the Securities and Exchange Commission (SEC) of the Philippines issued a cautionary notice that cast a shadow over Binance, alerting the public to the platform's apparent lack of proper authorization to sell or offer securities within the country.

The advisory took a firm stance, emphasizing that entities akin to Binance must navigate through a meticulous registration process, providing a trove of comprehensive information about the securities they intend to bring to the public domain. This detailed data encompasses key elements such as the issuance price, the intricate characteristics of the securities, and a slew of other pertinent details.

Furthermore, in strict adherence to the Securities Regulation Code (SRC) of the Philippines, issuers of securities are mandated to formally register within the country before embarking on making these securities available for investment. Notably, the issuer is also obliged to secure a secondary license to engage in the public sale or offering of securities. The statement underscored:

"Per the Commission’s meticulous records, the entity operating the Binance platform stands unregistered as a corporation in the Philippines and is purportedly operating without the requisite license and/or authority to sell or offer any form of securities, as delineated in Section 3.1 of the SRC."

Beyond the overarching issue of the absence of a required license, the SEC raised concerns that Binance has been allegedly engaging in unlawful promotion of its services within the Philippines. The regulatory body issued a stern warning, cautioning that entities involved in the promotion or trading of Binance may find themselves facing potential criminal charges under Section 28 of the SRC.

This purported criminal transgression carries the specter of considerable penalties, including a substantial fine of up to 5 million Philippine pesos (roughly $90,300), a substantial prison term of 21 years, or a combination of both, as outlined in the pertinent legal framework of Section 73 of the SRC, as prominently highlighted in the official statement.

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