The financial regulator in the Philippines is set to block local users’ access to Binance, the world’s largest cryptocurrency exchange, citing concerns over the firm’s lack of licensing for operations in the country.
According to a document dated March 25 from the Securities and Exchange Commission (SEC), the regulator enlisted the help of the National Telecommunication Commission (NTC) to restrict access to Binance’s website and online trading platform.
SEC Chairperson Emilio B. Aquino stated in the letter to the NTC that the SEC identified Binance’s platform as posing a threat to the security of Filipino investors’ funds.
The Philippines’ financial watchdog alleges that Binance offers investment products such as leveraged trading services and crypto savings accounts without the necessary licenses, contravening the Securities Regulation Code.
The ban is scheduled to take effect within three months, allowing investors time to exit their positions held through Binance. Additionally, the SEC requested that Google and Meta block Binance-related advertising from appearing on their platforms for Filipino users.
This ban adds to Binance’s regulatory challenges worldwide. In December, a U.S. court ordered Binance to pay $2.7 billion, and its former CEO, Changpeng “CZ” Zhao, to pay $150 million to the Commodity Futures Trading Commission (CFTC).
The settlement marked the conclusion of a protracted case in which Binance was sued by the CFTC in March 2023 for evading federal law and operating an illegal derivatives exchange.
On November 21, CZ agreed to step down from his position at Binance as part of a broader settlement with the U.S. Department of Justice, the Treasury Department, and the CFTC.
On the same day, Zhao pleaded guilty to multiple civil charges and one criminal charge related to Anti-Money Laundering laws. Zhao’s sentencing, initially scheduled for April 30, has been postponed. He is currently out on a $175 million release bond.