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Philippines think tank Infrawatch wants Binance banned
Infrawatch PH said Binance product offerings in the country are securities, blames it for Terra’s collapse.
2 min read
Updated: Aug. 1, 2022 at 12:18 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Philippines-based think tank Infrawatch PH has petitioned authorities to investigate Binance’s operation in the Asian country.
In a July 25 letter, the think tank alleged that Binance operated in the country without a license. It continued that the crypto exchange has no known office in Manila and uses third-party companies to employ citizens of the country.
“Binance has been doing business in the country as a virtual asset exchange platform without complying with the basic requirement of registration with the Commission and securing the necessary licenses to operate and offer financial instruments.”
Other infractions
The 12-pages letter detailed other infractions the crypto firm had violated with its operation in the country.
According to the think thank, Binance product offerings like spot trading, margin trading, P2P trades, crypto loan, and futures contract in the country is securities, meaning the exchange should register with the Philippine SEC before continuing with its business.
Infrawatch PH claimed that Binance was engaged in illegal sales promotion by enticing Filipinos to join the platform using crypto gifts, monetary rewards, vacation trips, etc.
Infrawatch PH also said that the Changpeng Zhao-led exchange was banned in multiple countries and blamed it for the Terra/LUNA collapse.
Infrawatch wants Binance banned
The think tank wants the SEC to fine Binance and prevents the firm or its affiliate from ever registering with the commission.
Terry Ridon, the think tank convener, said:
“The SEC has served the public well by banning unscrupulous online lending services. It should similarly do the same for unregistered and unregulated cryptocurrency exchanges in the country.”
Binance responds
A Binance spokesperson said the firm was working with regulators to get licensed as a virtual asset service provider and electronic money issuer in the country.
The spokesperson added that Binance aims to “contribute to the Philippines’ increasingly vibrant Web3 and blockchain ecosystem.”
Meanwhile, the Philippines Department of Trade and Industry (DTI) had previously rejected the think tank’s call for a ban because of a lack of regulatory clarity.
Recently, the Dutch central bank fined Binance €3.35 million for operating without a license.
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Oluwapelumi values Bitcoin's potential. He imparts insights on a range of topics like DeFi, hacks, mining and culture, underlining transformative power.
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Terra is a blockchain protocol that uses fiat-pegged stablecoins to power price-stable global payments systems.
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.