Frequently Promote Ads On Social Media, Binance Is Pressured By Philippine Regulators

Binance crypto exchange is under pressure from the Philippine government. (Photo; Doc. VTV)

JAKARTA - The world's largest crypto exchange, Binance, is under pressure from regulators in the Philippines and the United States (US). The Philippine Securities and Exchange Commission (SEC) issued a warning that Binance did not get permission to operate and offered its services in the country. Meanwhile, the US Treasury Department demanded Binance and its CEO, Changpeng Zhao, pay a fine of $4.3 billion (Rp61.5 trillion).

The Philippine SEC said that Binance has been actively promoting on social media to attract Filipinos to invest and trade crypto through its platform. In fact, Binance does not have the necessary permission to advertise and serve customers in the Philippines.

The Philippine SEC advises citizens to be careful when interacting and investing with unregistered entities. The Philippine SEC also threatens to criminally ensnare those acting as intermediaries, promoters, or drivers of the Binance platform in the Philippines.

On the other hand, Binance is also facing legal problems in the US. The US Treasury Department accused Binance and its CEO, Changpeng Zhao, of violating anti-money laundering and sanctions laws. Binance and Zhao allegedly deliberately ignored US legal and regulatory requirements for fear of reducing the attractiveness and loyalty of US users.

Zhao, who pleaded guilty and agreed to pay a fine of $50 million (Rp715 billion), resigned from his position as CEO and member of the board of directors. The US government has asked the court to detain Zhao in the US until his verdict, which is scheduled for February 23, 2024. Zhao faces up to 10 years in prison. Zhao's legal team has rejected the request of the US government. The judge has yet to give a verdict.

Binance is the largest crypto exchange in the world with daily trading volumes reaching $26.6 billion (Rp380.4 trillion). Binance offers various services, such as spot trading, margins, futures, options, and token shares. Binance also has its own cryptocurrency, namely Binance Coin (BNB), which is currently ranked third with a market capitalization of $64.4 billion (Rp921.6 trillion).

In addition, Binance also often gets the spotlight of regulators in various countries. Previously, Binance had also received warnings or warnings from authorities in the UK, Germany, Italy, Japan, Singapore, and Thailand. Binance claims that they always try to comply with the laws and regulations in every country they operate in.