Bitcoin Exchange Binance Faces Pressure from Philippine Regulator!

• In a recent move, the Securities and Exchange Commission (SEC) of the Philippines clarified the timeline for the impending ban on Binance and other unregulated crypto exchanges.
• This announcement by SEC Commissioner Kelvin Lee during a recent panel discussion reflects the increased focus of global regulators on the crypto industry.
• Significantly, Commissioner Lee countered criticisms about why Binance should not be banned despite being cheaper.

The Securities and Exchange Commission (SEC) of the Philippines takes action against Binance and other crypto exchanges: What does the regulator have planned?

Philippine Regulator Makes Decision on Binance

In a recent move, the Securities and Exchange Commission (SEC) of the Philippines clarified the timeline for the impending ban on Binance and other unregulated crypto exchanges. This announcement by SEC Commissioner Kelvin Lee sheds light on the evolving regulatory landscape in the Philippines and the potential implications of this environment for crypto investors.

The statement made by SEC Commissioner Kelvin Lee during a recent panel discussion in the Philippines reflects the increased focus of global regulators on the crypto industry. Commissioner Kelvin Lee emphasized during the panel that the ban on Binance would be effective for three months from the date of the advisory’s publication, which was November 29.

He acknowledged the possibility of an extension based on feedback but emphasized the extended period to protect Filipino investors from unnecessary complications during the holiday season, as reported by local media. Lee also revealed that his initial proposal on his desk was for only one month, demonstrating a flexible approach to the evolving situation.

Significantly, Commissioner Lee countered criticisms about why Binance should not be banned despite being cheaper. According to him, cost-effectiveness results from the exchange not registering with Philippine regulations. Lee highlighted the SEC’s duty by warning investors to stay away from unregistered exchanges, emphasizing the responsibilities and compliance costs associated with registered entities.

Broader Regulatory Outlook

Lee also provided insights into the upcoming crypto regulations, mentioning the transition from public consultations to engaging a series of experts and the process of reviewing and receiving feedback on the draft framework. While they have a draft based on SEC-centric regulations, he expressed confidence in resolving any overlaps with other regulators through additional implementation rules and regulations.

Importantly, Commissioner Lee emphasized the importance of investing in registered entities, promoting consumer protection, and collaborating with the increasing number of virtual asset service providers (VASPs) in the country. Regulatory developments reflect the SEC’s commitment to educating and protecting Filipino investors in the continually evolving crypto landscape.

For context, the Philippine SEC disclosed significant findings on November 29, indicating that Binance was involved in the illegal offering of securities in the country. According to Philippine regulations, securities must be registered with the SEC along with the offering prices. This rule applies to companies operating and licensed vendors in the Philippines.

Significantly, these recent challenges faced by Binance come after incidents where Binance CEO CZ faced allegations, and the U.S. Department of Justice (DoJ) filed a lawsuit against Binance for money laundering immediately afterward.