The Philippines Securities and Exchange Commission (SEC) has escalated its efforts to curb the operations of cryptocurrency exchange Binance in the country. In a recent move, the SEC has requested Google and Apple to remove the Binance app from their respective app stores for users in the Philippines.
TLDR
- The Philippines Securities and Exchange Commission (SEC) ordered Google and Apple to remove the Binance app from their respective app stores for users in the Philippines.
- The SEC cited security threats to investors and the potential detrimental effects on the local economy as reasons for the move.
- The SEC has identified Binance as operating without proper registration and licensing, offering unregistered securities, and acting as an unregistered broker, which violates Philippine securities laws.
- The move comes after the SEC and the National Telecommunications Commission (NTC) had previously blocked access to Binance websites in the country in March.
- The SEC has been warning the public against using Binance for investing since November 2023, as the exchange lacks the necessary licenses to operate in the Philippines.
According to a press release issued on April 23, the SEC sent separate letters to Google and Apple on April 19, urging them to remove applications controlled by Binance.com from their app marketplaces. The SEC cited security concerns for Filipino investors and potential detrimental effects on the local economy as reasons for this action.
SEC Chairperson Emilio B. Aquino stated in the letters that the SEC has identified Binance and concluded that the public’s continued access to these websites and apps poses a threat to the security of funds belonging to Filipino investors. He emphasized that the sale or offer of unregistered securities to Filipinos and operating as an unregistered broker constitutes a violation of the Philippine Securities Regulation Code (Republic Act no. 8799).
Aquino further explained that removing and blocking Binance applications from the app stores will help prevent the further proliferation of its illegal activities in the country and protect the investing public from the detrimental effects on the local economy.
This move comes shortly after the SEC and the National Telecommunications Commission (NTC) blocked access to Binance websites in the Philippines on March 25. The SEC has been actively warning the public against using Binance for investing since November 2023, citing the exchange’s lack of necessary licenses and registrations to operate in the country.
Binance, one of the world’s largest cryptocurrency exchanges, has been embroiled in regulatory battles across various jurisdictions. In the Philippines, the SEC has identified Binance as operating without proper registration and licensing, offering unregistered securities, and acting as an unregistered broker, which violates Philippine securities laws.
The SEC has advised Filipino investors with investments in Binance to immediately close their positions or transfer their cryptocurrency holdings to their own crypto wallets or accounts with cryptocurrency service providers that are duly registered in the Philippines.
Binance has faced legal challenges in other parts of the world as well. In June 2023, the U.S. Securities and Exchange Commission (SEC) sued the firm and its founder, Changpeng Zhao, accusing them of skirting U.S. securities regulations. Additionally, the Commodity Futures Trading Commission (CFTC) filed charges against Binance and Zhao in March 2024, alleging violations of U.S. commodities laws.
While Binance has strongly denied these allegations and vowed to defend its platform, the mounting regulatory scrutiny and legal battles highlight the challenges faced by cryptocurrency exchanges in navigating the complex and evolving regulatory landscape across different jurisdictions.
