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Securities and Exchange Commission (SEC) of the Philippines restricts local users’ access to Binance to protect investors’ funds.
The Philippine Securities and Exchange Commission (SEC) intends to restrict Binance access due, to worries about its activities, within the nation. Collaborating with the National Telecommunication Commission the SEC aims to block its website and online trading services.
SEC Chair Highlighted The Danger
SEC Chairperson Emilio B. Aquino expressed concern about the risk to the safety of Filipino investors’ funds if unrestricted access to certain platforms continues. The SEC has identified these platforms and concluded that the public’s continued use of these websites/apps poses a threat to the security of investing Filipinos’ funds.
To minimize immediate disruptions, the implementation of the ban on Binance will be gradual over the next three months to allow investors enough time to close their positions. The SEC has also requested that Google and Meta to prevent Binance-related advertisements from reaching the Filipino audience.
The Commodity Futures Trading Commission (CFTC) lawsuit, which began in March 2023, accused Binance of operating an illegal derivatives exchange without authorization. Thereby violating U.S. law. The CEO of, Changpeng “CZ” Zhao has had to face serious consequences. these included his resignation from his leadership position at the company in November. Moreover, this will be a part of a broader settlement with various U.S. regulatory bodies, including the Department of Justice and the CFTC.
Furthermore, CZ has admitted guilt to multiple civil infractions and a criminal charge related to Anti-Money Laundering violations. Moreover, he is awaiting sentencing for money laundering charges, currently scheduled for April 30. CZ remains on a $175 million release bond.
Binance and its Challenges
The recent regulatory measures taken against Binance in the Philippines contribute to the increasing array of hurdles faced by the exchange. The company has encountered challenges, from regulators recently including a ban. Regulatory bodies worldwide are looking into its operations. In December 2023 a US court ruled that it must pay $2.7 billion and its former CEO, Changpeng “CZ” Zhao must pay $150 million in fines to the Commodity Futures Trading Commission (CFTC).
Following settlements with the US Department of Justice, the Treasury Department and the CFTC CZ stepped down from his leadership role at Binance in November. On that day he admitted to criminal violations linked to Anti Money Laundering regulations.
Although his sentencing, for money laundering offenses was delayed until April 30 he was freed on a $175 million bond. These developments highlight the scrutiny Binance is under impacting its global operations and strategies. In response to mounting regulatory pressure, The company withdrew from the Russian market last year. The company’s exit plan involved selling its Russian operations to CommEX, another digital asset exchange.
Summary
The Philippine SEC plans to limit Binance access over concerns about its activities in the country. SEC Chairperson Emilio B. Aquino expressed worry about the safety of Filipino investors’ funds. Additionally, the CEO CZ faces money laundering charges. These developments put the company under scrutiny, affecting its global operations.
Disclaimer
The views and opinions stated by the author or any people named in this article are for informational purposes only. They do not establish financial, investment, or other advice. Investing in or trading in stocks, cryptos, or other related indexes comes with a risk of financial loss.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
