Binance Gets Banned In The Philippines As Local Users Granted Grace Period

The recent prohibition imposed by the Philippines Securities and Exchange Commission (SEC) on Binance has sparked concern among Filipino crypto investors regarding the status of their digital assets. According to Attorney Paolo Ong, representing the SEC, the ban forms part of broader regulatory measures aimed at ensuring compliance, encompassing not only Binance but also other platforms operating without adherence to regulations.

A Major Crackdown

The situation surrounding Binance reflects the wider regulatory crackdown on crypto exchanges in the Philippines, with about 14 platforms barred in 2023 for similar non-compliance issues. Ong stressed that the SEC is not solely targeting Binance, indicating a uniform approach to safeguarding investors.

In a similar context, eToro received warnings for lacking necessary registrations and licenses, echoing regulatory challenges faced by Binance. Both platforms were flagged for operating without SEC approval, underscoring the importance of adhering to regulatory standards in the region. Regarding concerns of Binance users regarding accessing their funds, Ong mentioned the existence of a grace period initiated through a November advisory, providing ample time for users to transfer their assets from the platform.

Mixed Opinions

The SEC is in the process of drafting regulations to regulate the burgeoning crypto transactions in the Philippines, which amounted to $80 billion in 2023. The establishment of the Innovation Office aims to educate the public on the risks and opportunities associated with new financial technologies, while finalizing the regulatory framework.

Despite the clear stance of the SEC, neither Binance nor eToro has sought a license to operate in the Philippines, indicating a gap in efforts to comply with local financial regulations. While some would claim that this situation underscores the commitment by the SEC to protecting investors and ensuring that financial platforms operate within the confines of the legal framework, others believe that this is simply another attempt by the authorities to curb freedom and financial independence, two aspects which the cryptocurrency community deem crucial.