Philippines SEC Blocks Binance, Warns of Legal Action for Unlicensed Operations

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Thursday, November 30, 2023 3:59 AM UTC

The Philippines SEC said that all organizations involved in Binance’s unregistered operations may get a 21-year prison sentence on top of the $90,000 in fines. The securities regulator reiterated that the Changpeng “CZ” Zhao-founded cryptocurrency exchange has no approval or proper license to carry out its business in the country.

SEC Informs Public About Unauthorized Binance Services

According to CoinTelegraph, the local SEC issued a warning to the public so they can avoid or discontinue using Binance’s services. The regulator informed the locals that the crypto firm is not authorized to sell or offer securities in the region.

The announcement also serves as a warning to Binance and makes it clear to the company that it is required to apply for registration before it can operate. The SEC emphasized that it must also supply detailed information about the securities it offers before selling them. It must include the class of securities, issuance price, and other pertinent details.

The Philippines’ Securities Regulation Code (SRC) added that Binance must also obtain a secondary license for selling securities to the public. “Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and authority to sell or offer any form of securities as defined under Section 3.1 of the SRC,” the regulator said in its announcement.

Imminent Removal of Access

BSC News reported that the SEC indicated that it will cut access to Binance in the Philippines, and the removal is to be carried out within three months from the issuance of the advisory. The commission said the grace period was implemented to give users in the country enough time to withdraw their investments from Binance.

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