Binance faces regulatory challenges in the Philippines as the SEC declares the platform lacks the necessary licenses for operations in the country.
Key Takeaways
- The SEC in the Philippines has officially stated that Binance is not authorized to promote or provide services to citizens within the country due to a lack of required licenses.
- The SEC has cautioned Filipino citizens against engaging with Binance, emphasizing the potential criminal liability for those promoting the platform’s services without the necessary licenses.
- Binance recently settled with the US Department of Treasury for a historic $4.3 billion, facing accusations of violating anti-money laundering and sanctions laws. CEO Changpeng Zhao, who pleaded guilty, stepped down amid legal proceedings.
Philippines SEC Flags Binance’s Unauthorized Operations
The Securities and Exchange Commission (SEC) of the Philippines has issued a formal advisory, notifying citizens that Binance lacks the required licenses to operate within the country.
Binance, Not Licensed To Render Services To Citizens in Philippines: SEC
— crypto shot news (@Anilp2pvakta2) November 30, 2023
Despite promotional efforts on social media platforms to attract Filipino investors, the SEC underscores the illegality of Binance’s services in the Philippines.
US Department of Treasury’s $4.3 Billion Settlement
The regulatory troubles for Binance extend beyond the Philippines, as the US Department of Treasury settles with the platform for a historic $4.3 billion. The allegations include violations of million dollar laundering and sanctions laws.
In response, CEO Changpeng Zhao pleaded guilty, agreeing to pay fines and resigning from his position.
To Conclude
Binance faces a dual challenge, with the Philippines SEC officially disapproving its operations in the country due to licensing issues, and a significant settlement with the US government over alleged legal violations.
The legal landscape is further complicated by the resignation of CEO Changpeng Zhao and the impending sentencing, marking a turbulent period for the cryptocurrency exchange platform.
