The Philippine SEC has set a three-month timeline for Binance and other unregistered crypto exchanges to cease operations in the country, citing consumer protection and accountability concerns.
The Philippine Securities and Exchange Commission (SEC) has announced that Binance and other unregulated crypto exchanges have three months to stop offering their services in the country or face legal consequences. The SEC issued an advisory on November 29, warning investors to avoid dealing with unregistered exchanges and accusing Binance of violating securities laws.
The SEC’s Commissioner, Kelvin Lee, clarified the timeline during a recent panel discussion, saying that the ban will take effect three months from the date of the advisory. He said that this period will give Filipino investors enough time to close their positions and withdraw their funds from Binance, especially during the Christmas season.
Kelvin Lee also said that the SEC may consider extending the deadline based on feedback, but he defended the decision to ban Binance, saying that the exchange’s low fees are due to its non-compliance with Philippine regulations. He emphasized the SEC’s mandate to protect investors and ensure accountability and transparency in the crypto market.
Lee also shared some insights into the SEC’s upcoming crypto regulation framework, which he said will be based on a draft prepared by the SEC itself rather than the public consultation process that was previously announced. He said that the draft will be reviewed by a select group of experts, who will provide feedback and suggestions.
The Commissioner added that the draft will address any potential overlaps or conflicts with other regulators, such as the central bank or the anti-money laundering council, through additional implementing rules and regulations. He said that the SEC aims to create a balanced and conducive environment for crypto innovation while ensuring consumer protection and compliance.
Lee also urged investors to only deal with registered entities, such as virtual asset service providers (VASPs), who have obtained licenses from the SEC or the central bank. He said that the SEC is open to collaborating with the growing number of VASPs in the country and educating the public about the risks and opportunities of crypto assets.
The SEC’s advisory on Binance came after the regulator found evidence that the exchange was involved in the illegal offering of securities in the Philippines. According to the SEC, Binance was promoting and facilitating the trading of various crypto assets, such as tokens, coins, and contracts, that are considered securities under Philippine law.
The Philippine SEC said that securities, along with their issuance prices, are required to be registered with the SEC, regardless of whether they are issued by corporations or licensed dealers. The SEC also said that Binance was using social media and other online platforms to solicit investments from Filipinos, which may constitute criminal liability for the promoters.
The regulatory body warned investors to exercise caution and due diligence when dealing with Binance and other unregistered exchanges, as they may expose themselves to fraud, manipulation, and other risks. The SEC also said that it will coordinate with other authorities to block access to Binance and other unregistered exchanges in the country.
