- The SEC said that Binance had been illegally advertising its services in the nation.
- Securities issuers must also be registered in the Philippines before they offer products.
The Philippines SEC has reported that crypto exchange Binance has been operating illegally in the country. On November 28, the Securities and Exchange Commission (SEC) of the Philippines warned the public that Binance does not have the necessary authorization to sell or offer securities in the nation.
In order to sell assets to the public, an exchange has to file for registration and provide extensive details about them, according to the release. The issue price, security type, and other details are all part of this precise data.
Trouble Continues for Binance
Securities issuers must also be registered in the Philippines before their products may be offered for investment, according to the Securities Regulation Code (SRC). According to the statement, in order for the issuer to sell or offer securities to the public, they need also get a secondary license.
The SEC said that Binance had been illegally advertising its services in the nation and that it had also been operating without the required license. The regulator has issued a warning that some businesses might face criminal charges under Section 28 of the SRC if they promote or trade on Binance.
Moreover, in accordance with Section 73 of the SRC, the statement states that this is a crime punishable by a fine of up to 5M Philippine pesos ($90,300) or 21 years in jail, or both.
Changpeng Zhao (CZ), CEO of Binance, resigned a few days ago after pleading guilty in a U.S. court to breaking U.S. Anti-Money Laundering rules. To fight cryptocurrency fraud, the SECs of the Philippines and the United States joined forces in September 2023.
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