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Binance Faces Possible Ban in Philippines as SEC Plans Action Soon

The Philippines SEC has clarified the timeline for the impending ban on Binance, one of the world’s largest cryptocurrency exchanges.

Key Takeaways

  • The Philippines SEC, led by Kelvin Lee, announced a three-month countdown to the Binance ban, starting from the advisory’s issuance on Nov. 28.
  • Kelvin Lee clarified that the timeline could be extended based on feedback and evolving circumstances but highlighted the need for regulatory compliance.
  • Binance, along with OctaFX and MiTrade, faces a ban following the same three-month timeline for operating without proper registration.
  • Kelvin Lee defended the regulatory actions, addressing criticism about lower fees on unregistered exchanges, emphasizing the importance of compliance and consumer protection.

3 Month Countdown to Binance Ban

In a recent panel discussion on Dec. 13, Kelvin Lee, the head of the Philippines SEC, provided clarity on the timeline for the impending ban on Binance, a major cryptocurrency exchange. Lee revealed that the ban, initially issued as an advisory on Nov. 28, would officially take effect three months from the advisory’s issuance date.

The three-month countdown, according to Lee, commenced on Nov. 29, taking into account the upcoming Christmas holiday season. Lee acknowledged the initial recommendation for a shorter timeframe, possibly just one week for transition, but opted for a more extended period to accommodate Filipino investors during the festive season.

In addition to Binance, Lee disclosed that OctaFX and MiTrade, two other cryptocurrency exchanges issued advisories for operating without proper registration, would also face bans following the same three-month timeline.

SEC’s Attempt to Include DOJ Settlement

Binance Holdings and its former CEO, Changpeng Zhao, have vehemently opposed the recent move by the U.S. SEC to introduce Binance’s admission of guilt to the Department of Justice (DOJ) in ongoing legal proceedings. In a legal filing submitted on Dec. 12, Binance challenged the SEC’s attempt, asserting procedural errors and arguing against its inclusion.

The SEC’s move to enforce regulations on cryptocurrency exchanges aligns with broader efforts to protect investors and establish a level playing field in the crypto market. As the three-month countdown to the Binance ban begins, the SEC will closely monitor the situation and the response of other unregistered exchanges to regulatory actions.

To Conclude

The legal dispute between Binance and the SEC originated on Jun. 5, 2023, when the regulatory agency accused the cryptocurrency exchange of 13 securities law violations.

These allegations included claims of mismanagement of customer assets, improper redirection of customer assets, and violations of U.S. securities laws. The outcome of this case holds significant implications for cryptocurrency regulation in the United States and globally.