The Philippines' securities regulator has taken enforcement action against Binance, ordering Google and Apple to remove its apps from their respective app stores. This action follows allegations that Binance offered unregistered securities to Filipino investors.
Philippine SEC targets Binance apps
The Securities and Exchange Commission (SEC) of the Philippines, through its Chairman Emilio Aquino, has highlighted the threat posed to the security of investors' funds by continued access to Binance sites and applications.
The regulator alleged that Binance's presence in app stores facilitates the spread of its illegal activities in the country. The action is a response to findings that the exchange was promoting its services to attract funds from Filipinos despite lacking the necessary license from the regulator.
🚨PHILIPPINES SEC GOES TO WAR AGAINST BINANCE🚨Blocking Binance “will prevent the proliferation of its illegal activities in the country” – According to an article on the regulator’s official website, the Philippine version of the SEC is actively working with… pic.twitter.com/IooxO752Jv
– BSCN (@BSCNews) April 23, 2024
The latest enforcement action in the Philippines adds to Binance's growing legal challenges, including the recent replacement of its CEO and a hefty fine levied by the US government against the exchange for alleged violations of anti-money laundering regulations.
Former Binance CEO Changpeng Zhao faces imminent sentencing for violating the Bank Secrecy Act. Additionally, the exchange faces lawsuits from the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission for alleged mismanagement of customer assets.
The SEC of the Philippines has advised investors holding assets in Binance to promptly close their positions or transfer them to exchanges or wallets registered in the country.
Binance faces legal hurdles
Last month, the Philippines' SEC blocked Binance's operations as an investment and trading platform over claims that the exchange lacked the required license. According to the watchdog, Binance has continued its activities despite warnings issued since November 2023.
In a meeting held on March 12, the SEC formally requested the National Telecommunications Commission to block Binance's website and related web pages. Aquino highlighted the threat posed to Filipino investors’ funds by allowing continued access to the platform.
Binance's failure to obtain the necessary license from the SEC contradicts Philippine regulations, which require companies to obtain approvals before soliciting investments and operating securities exchanges. Additionally, the exchange's extensive social media promotional campaigns targeting Filipino investors have raised concerns about compliance and investor protection.
This article was written by Jared Kirui at www.financemagnates.com.
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