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SEC Philippines ordered the removal of the Binance app from Google and Apple app stores due to security threats to investors and the local economy.
The Securities and Exchange Commission (SEC) is collaborating with Google and Apple to eliminate applications managed by Binance, a cryptocurrency giant, from app marketplaces in the Philippines.
SEC’s Letter To Binance
On April 19, the SEC sent separate letters to both Google and Apple requesting the removal of the Binance-controlled applications from the Google Play and Apple App Store. The SEC has identified Binance and concluded that continued public access to these websites/apps threatens the security of the funds of investing Filipinos.
In a letter, the Chairperson of the Securities and Exchange Commission (SEC), Emilio B. Aquino, indicated that the act of selling or offering unregistered securities to Filipinos, as well as operating as an unregistered broker, violates Republic Act no. 8799, or The Securities Regulation Code.
Mr. Aquino emphasized that removing and blocking Binance’s applications would help prevent the further spread of its illegal activities in the country, which could negatively impact the economy. This action aims to safeguard the investing public from any potential harm.
The request from the SEC and the National Telecommunications Commission to block access to websites used by Binance in the country followed this.
SEC’s Warning
The SEC warned the public against investing in and using Binance. It began studying the possible blocking of Binance’s website and other online presence in the Philippines as early as November 2023.
Binance is a large crypto trading platform with over 183 million members, trading more than 402 cryptocurrencies daily.
However, it needs the necessary license to operate an exchange for buying and selling securities, as the law requires. The SEC advises Filipino investors to close their positions or transfer their crypto holdings to duly registered providers. However, the SEC has yet to secure a license for Binance to solicit investments from the public or operate an exchange to buy and sell securities.
The Problem With Binance According To SEC
Binance has been involved in various regulatory-related issues worldwide. In Canada, it is facing a new class-action lawsuit alleging that it violates local securities laws. At the same time, it has agreed to pay a $2 Million fine for previous non-compliance with local regulations in India.
On the other hand, the cryptocurrency exchange has received its crypto license in Dubai, known as the Virtual Asset Service Provider (VASP), after Binance’s co-founder gave up his voting power in the exchange’s local entity.
On April 8, an SEC official reiterated that they had already given users three months and an extension. It was done to facilitate the withdrawal of their funds from the exchange. After this period, the SEC said they could not endorse any methods for retrieving funds.
Conclusion
Google and Apple are removing Binance’s cryptocurrency apps in the Philippines due to unregistered security sales violating local regulations. Binance has faced other regulatory issues globally. However, the cryptocurrency exchange received its crypto license in Dubai after Binance’s co-founder forfeited his voting power in the exchange’s local entity.
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 related indexes comes with a risk of financial loss.
Adarsh Singh is a true connoisseur of Defi and Blockchain technologies, who left his job at a “Big 4” multinational finance firm to pursue crypto and NFT trading full-time. He has a strong background in finance, with MBA from a prestigious B-school. He delves deep into these innovative fields, unraveling their intricacies. Uncovering hidden gems, be it coins, tokens or NFTs, is his expertise. NFTs drive deep interest for him, and his creative analysis of NFTs opens up engaging narratives. He strives to bring decentralized digital assets accessible to the masses.
