Philippine SEC warns people against investing with Binance

In response to efforts by the policy think tank Infrawatch PH to persuade the Philippine Securities and Exchanges Commission (SEC) to take action against the exchange, the SEC issued a warning to the general public telling them not to invest in the cryptocurrency exchange Binance.

Oliver Leonardo, director of the Securities and Exchange Commission, encouraged the public not to invest in the exchange in a letter. The SEC also said that, based on its preliminary evaluation, Binance is not a registered entity. Leonardo penned:

Because only registered companies are eligible to apply for and get the requisite licenses to solicit investments, Finance does not have the required power or authorization to do so.
The letter emphasized Binance’s violations of SEC-enforced regulations such the Securities Regulation Code and the Revised Corporation Code. The SEC also said that it invites any victims to come forward and file complaints against the exchange if there are any.

This explains the government’s stance on the use of crypto platforms, according to Infrawatch PH Convenor Terry Ridon. According to him, “This guidance offers instant protection to Binance consumers who could have lost their money trading in an unlawful site.”

Binance said in a statement to Cointelegraph that they are aware of the letter the SEC issued to Infrawatch PH and that they support the SEC’s goal of user protection. A spokesman for the exchange said that they are willing to communicate with the SEC. They clarified that Binance supports the creation of regulatory frameworks that change in response to innovation. Binance stated:

“We look forward to having an open communication with the SEC and any other industry players who share our goal of financial inclusion and empowerment,” the statement reads. “We welcome the emergence of great technologies like blockchain.
Binance said in June that it intended to apply for both a VASP license and an e-money issuer license in the Philippines. Changpeng Zhao, the CEO of Binance, said that the exchange is considering expanding its domestic operations.

Infrawatch PH began working against Binance in the same month by contacting the Philippine central bank. The lobbying organization also attempted to get Binance banned due to suspected unlawful marketing by requesting that the Department of Trade and Industry (DTI) of the nation. The DTI retorted that they were unable to enforce any judgment against the exchange.

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