Philippines SEC Bans Binance, Affects Filipino Crypto Users

The recent ban on Binance by the Philippines Securities and Exchange Commission (SEC) has stirred concerns among Filipino investors about the fate of their cryptocurrencies.

Attorney Paolo Ong, from the SEC, detailed in an interview how the ban is part of broader regulatory efforts, not solely targeting Binance but including other platforms operating without compliance.

Binance’s situation echoes the broader regulatory crackdown on crypto exchanges in the Philippines, with approximately 14 platforms banned in 2023 for similar compliance failures.

Ong emphasized, “We’re not singling out Binance,” showcasing the SEC’s uniform approach to protecting investors.

In a similar vein, eToro faced warnings for lacking the necessary registrations and licenses, mirroring Binance's regulatory issues.

Both platforms were highlighted for operating without SEC approval, stressing the importance of compliance in the region.

For Binance users worried about accessing their funds, Ong mentioned a "grace period" had been given, starting from an advisory issued last November, allowing ample time for users to transfer their assets out of the platform.

The SEC is drafting regulations to safeguard the booming crypto transactions in the Philippines, which hit $80 billion in 2023.

The creation of the Innovation Office aims to educate the public on the risks and opportunities of new financial technologies while the regulatory framework is being finalized.

Despite the SEC's clear stance, neither Binance nor eToro has applied for a license to operate in the Philippines, highlighting a gap in efforts to comply with the country’s financial regulations.

This situation underlines the SEC's dedication to protecting investors and ensuring that financial platforms operate within the legal framework.