Philippines SEC says Binance operates without the ‘necessary license’ in its jurisdiction
Binance faces regulatory issues across multiple jurisdictions.
The regulator stated:
“Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority.”
While acknowledging Binance’s registration in other countries, the regulatory body said the firm is not registered in the Philippines and has not fulfilled the requirements for platforms intending to offer securities under its jurisdiction.
Alongside the warning, the SEC outlined potential penalties for individuals or entities promoting Binance within the country. They could face up to 21 years of imprisonment and fines reaching 5,000,000 Pesos (approximately $90,000).
The regulator concluded that Filipinos must exercise caution before investing in any exchange’s offerings.
Binance regulatory issues
During the past year, Binance has faced increased regulatory across multiple jurisdictions, including the United States, the U.K., Nigeria, and several European countries.
In the U.S., several federal agencies, including the U.S. Department of Justice and the Commodity Futures Trading Commission (CFTC), recently reached a $4 billion settlement with the exchange. Besides that, the firm’s founder, Changpeng ‘CZ’ Zhao, resigned as CEO after pleading guilty to money laundering charges.
The U.S. Securities and Exchange Commission (SEC) has also filed legal actions against the cryptocurrency exchange.
On the other side of the Atlantic, BInance has exited from several European jurisdictions like Germany, the Netherlands, Austria, and Cyprus. The firm has also had to close shop in the U.K.
Simultaneously, some Binance users have initiated a class-action lawsuit against Cristiano Ronaldo for endorsing the exchange. These users alleged that Ronaldo’s promotion of the firm caused them financial losses.