SEC bares plan to block Binance in Philippines

The Securities and Exchange Commission on Wednesday warned the public against using cryptocurrency exchange Binance as it bared its plan to have the platform blocked in the Philippines.

In line with its advisory, the SEC said it would ask the National Telecommunication Commission and the Department of Information and Communications Technology to block access to Binance because it was not authorized to sell or offer securities.

“This will prohibit users from accessing the website and its applications while inside the country,” the SEC said.

“The removal of access in the Philippines is expected to take effect within three months after the issuance of the advisory, in order to give Filipino investors who have holdings in Binance to close their positions and take out their investments,” it added.

The SEC said it already requested Google and Meta to prohibit online advertisements from Binance appearing to users in the Philippines. 

The SEC said that Binance was “not authorized to sell or offer securities to the public in the Philippines, pursuant to Republic Act No. 8799, or The Securities Regulation Code (SRC).”

Sought for comment, Binance told GMA News Online that it acknowledged and respected the statement made by the SEC.

“At Binance, we are committed to aligning with applicable local regulations. Under our new leadership, we have taken proactive steps to address the SEC's concerns,” its statement said.

The law requires entities seeking to engage in the business of buying or selling securities or as a broker-dealer, or seeking to create or operate an exchange for the buying and selling of securities, to secure a secondary license with the SEC. 

“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/or authority to sell or offer any form of securities as defined under Section 3.1 of the [SRC] to engage in the business of buying or selling securities or as a broker or dealer as provided under Section 28 of the SRC, or to create or operate an exchange for the buying and selling of securities as provided under Section 32 of the SRC,” the corporate regulator said in its advisory.

The SEC added it found Binance has been actively employing promotional campaigns on social media to attract Filipinos to engage in investment and trading activities using its platforms. 

The agency issued a stern warning against those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of Binance in selling or convincing people to invest in its platform within the Philippines.

It said that those involved in selling or convincing investment in Binance, even through online means, “may be held criminally liable under Section 28 of the SRC and be penalized up to P5 million or suffer imprisonment of up to 21 years, or both.” —NB, GMA Integrated News