Philippine SEC Warns Its Citizens Not To Invest In Binance Crypto Exchange, Here's Why!

Crypto exchange Binance stumbles upon licensing issues in the Philippines. (Unsplash)

JAKARTA – The world's largest crypto exchange by trading volume, Binance, has recently stumbled upon regulations in the Philippines. The Philippine Securities and Exchange Commission (SEC) advises the public not to invest their funds on the Binance crypto exchange platform.

This is a form of the regulator's response to the insistence of Infrawatch PH's policymakers to take firm action against Binance. This is because the exchanger is considered a company operating without a permit in the country.

“Binance does not have the necessary authority and/or license to request investments as only registered companies can apply and be granted the necessary licenses to raise investments,” SEC Philippines Director Oliver Leonardo wrote in the letter.

The Philippine SEC considers that Binance has violated the regulations regarding the Securities Regulatory Code and Revised Company Code that have been set by the regulator. Furthermore, the SEC emphasized that users of the platform can file their complaints against the exchange in case of problems.

“This advisor provides immediate protection to Binance users who may have lost their money investing in unlicensed platforms,” said Terry Ridon of Infrawatch PH commenting on the matter.

On the other hand, Binance's statement to Cointelegraph stated that it was aware of the letter sent from the SEC to Infrawatch PH. The crypto trading company believes that Binance shares the same mission as the SEC when it comes to user protection.

Accordingly, Binance will be open to dialogue with regulators. They believe in developing regulatory frameworks that thrive with innovation.

“We are driving the growth of positive innovations such as blockchain and look forward to having an open dialogue with the SEC and other industry participants who share our vision of financial inclusion and empowerment,” said a Binance spokesperson.

In June, Binance stated its intention to obtain a virtual asset service provider (VASP) license and an electronic money issuer license in the Philippines. Binance CEO Changpeng Zhao stated that the exchange is interested in expanding its operations in the country.