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Philippines Financial Watchdog warns public against investing with Binance
The Philippines SEC has cautioned the public not to invest with Binance, stating it has no license to offer investment services in the country.
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Updated: Aug. 4, 2022 at 7:10 pm UTC
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The Philippines Securities and Exchanges Commission (SEC) has issued a warning to the public against dealing with Binance.
The caution was contained in a response sent to Infrawatch PH, a public policy think-tank working to see that the exchange is banned.
Earlier in July, Infrawatch PH sent a 12-page letter to the SEC demanding an investigation into the activities of Binance and a request to have it banned from operating in the country. The group claimed that Binance was illegally offering digital assets classified as securities without registering with the SEC.
In response, the SEC after its investigation has issued a note of caution to the public against investing with Binance, stating it is unregistered in the country.
The official statement reads:
“Binance is not a registered corporation or partnership. Consequently, Binance does not possess the necessary authority and or license to solicit investments as only registered corporations can apply for and be issued the necessary licenses to solicit investments.
Considering these circumstances, we caution the public NOT TO INVEST with Binance.”
The commission also initiated a system of inquiry for Binance users who may have lost their money while investing in the exchange.
Infrawatch PH going all out against Binance
The public policy think-tank has been lobbying relevant Philippian regulators to see that Binance’s operation in the country is checked.
In a letter sent to Philippine Central Bank in June, Infrawatch PH expressed its concern over the operations of Binance in the country without a Virtual Asset Service Provider (VASP) license. It blamed Binance for the LUNA collapse and cited other countries where the exchange was banned for facilitating illicit financial activities.
As a follow-up to their request, the group reached out to the Philippine Department of Trade and Industry (DTI) seeking an investigation against Binance for luring Filipino customers to invest with it by sharing unregistered promotions via social media. According to the letter, Binance showed no regard for the authority and so should be banned totally.
Binance still open to dialogue
In light of the SEC’s warning, a Binance spokesperson confirmed that the exchange is open to working with the SEC to protect its customers.
“We encourage the growth of positive innovations such as blockchain and look forward to having open dialogue with the SEC and any other industry participants that share our vision of financial inclusion and empowerment.”
Binance CEO, Changpeng Zhao in a press briefing earlier in June hinted at plans to obtain the virtual assets service provider (VASP) and e-money issuer licenses from relevant Philippian regulators.
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Christian Nwobodo
Christian is a crypto-curious nerd who loves to investigate how protocols work under the hood. Christian is interested in DeFi protocol research, token economics, and on-chain analytics.
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Binance
Binance is a global cryptocurrency exchange that provides a platform for trading more than 100 cryptocurrencies.
Changpeng Zhao, popularly known as “CZ,” is a notable figure in the cryptocurrency world, primarily for founding and leading Binance, the world’s leading cryptocurrency exchange by trading volume.