SEC proceeds to block Binance crypto platform

In this photo illustration, the Binance logo is displayed on a screen on June 06, 2023 in San Anselmo, California. The Securities And Exchange Commission has filed lawsuits against cryptocurrency exchanges Coinbase and Binance for allegedly violating multiple securities laws.
Photo Illustration by Justin Sullivan/Getty Images

MANILA, Philippines — The Securities and Exchange Commission (SEC) is pushing through with the blocking of cryptocurrency exchange Binance in the Philippines.

The SEC en banc in its March 12 meeting approved the filing of a formal request with the National Telecommunications Commission (NTC) for assistance in blocking the website and other web pages used by Binance.

In November last year, the SEC issued a warning to the public against using the online cryptocurrency exchange and has started studying the possible blocking of the platform in the Philippines to safeguard the public from unregistered investment products.

The SEC said Binance was found to have offered an investment and trading platform without the necessary license from the commission.

It also said the group has been actively employing promotional campaigns on social media to attract Filipinos to engage in investment and trading activities using its platforms.

“The SEC has identified the aforementioned platform and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos,” SEC chairperson Emilio Aquino said in the letter-request addressed to the NTC.

According to the SEC, Binance defines itself as a facility for trading financial instruments and offers investment products -- including spot trading using leverage, futures contracts, option contracts, cryptocurrency savings accounts, cryptocurrency staking services and a platform for initial coin offerings.

According to its website, Binance has an average daily trading volume of $65 billion covering more than 402 cryptocurrencies, with a membership of over 183 million.

The SEC, however, said Binance has not secured from the commission a license to solicit investments from the public, or to create or operate an exchange for the buying and selling of securities as required by the Securities Regulation Code.

The commission ensured that the investing public would have enough time to exit the platform and reposition their portfolio in favor of authorized investment products and platforms.

The SEC said it has been actively working with the NTC to block websites illegally offering investments in the country.

The NTC earlier ordered all internet service providers to block the websites and apps of OctaFX and MiTrade for the protection of the investing public, upon the SEC’s request.

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