- The Philippines SEC demands the removal of Binance apps from digital stores.
- Local ISPs were instructed to block access to Binance websites.
- SEC warns against unregulated Binance operations, citing security risks.
In recent years, the cryptocurrency sector has seen ups and downs, attracting the attention of both investors and regulators. Since the collapse of FTX, crypto exchanges have faced intense scrutiny worldwide.
Most recently, the Philippines SEC took decisive action against Binance, one of the largest cryptocurrency exchanges globally. The SEC argues that Binance’s operations, without the required licenses, pose significant risks to Filipino investors.
The Philippines SEC Pushes Binance Out
On Tuesday, April 23, the SEC formally requested Google and Apple remove Binance’s apps from their stores. The regulator cited the lack of required registration and licensing as violating the Securities Regulation Code (Republic Act No. 8799).
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The SEC’s directive also extends to blocking Binance’s website via local internet providers. This blocking is intended to prevent new registrations and further financial transactions from within the Philippines.
The regulator said it had issued several warnings about the lack of necessary registrations and licenses. Despite efforts to address these concerns, Binance did not align with local regulations in time, leading to the SEC’s decision to block access to Binance’s platforms and applications within the country.
This enforcement measure, according to authorities, is part of a broader effort to protect the investing public from potential scams and financial losses. By blocking unregistered entities, the SEC wants to mitigate the risk of financial losses to Filipino users.
Philippines Devastated by Crypto Project Collapse
The crypto regulatory landscape in the Philippines has become increasingly stringent, especially after the collapse of Axie Infinity. The NFT-based play-to-earn game gained immense popularity in the Philippines during the COVID-19 pandemic.
At its peak, the game had drawn substantial participation from many players, termed ‘scholars’, who were sponsored by investors to play the game in exchange for a share of the earnings. This arrangement turned sour as the value of the game’s token, plummeted, causing financial distress to many participants.
Following the massive popularity and subsequent economic pitfalls experienced by players of Axie Infinity, Philippine regulators have taken a more cautious approach to crypto-based games.
On the Flipside
- Binance is not the only exchange facing scrutiny in the country. On April 5, regulators also flagged eToro as operating without a license.
- Despite its stringent take on crypto, the Philippines is eying the launch of its own central bank digital currency (CBDC) by 2026.
Why This Matters
The Philippine SEC’s blocking of Binance highlights the critical importance of regulatory compliance for crypto exchanges. It also signals increased global scrutiny over crypto.
Read more about the potential crackdown on eToro:
eToro Faces Philippines Scrutiny for Alleged Securities Sale
Read more about the US SEC facing backlash:
Regulatory Overreach? SEC Lawyers Resign Over DEBT Box Debacle
