Philippines Cracks Down on Binance for Lack of License
The Philippine Securities and Exchange Commission (SEC) implemented controls aimed at restricting local access to the Binance cryptocurrency exchange. This step comes in response to the concerns about the illegal activities of Binance in the territory.
A publication of the SEC on 25 March refers to the regulator’s petition to the National Telecommunications Commission (NTC) to prevent users in the Philippines from reaching Binance’s website and trading platforms. The move was commented on by the Chairperson of SEC, Emilio B. Aquino, as required to protect Filipino investors, noting that the fact that the platform is still up represents a threat of losing their funds.
Binance has also been charged by the SEC for providing investment products such as leveraged trading services and crypto savings services without the necessary qualification. The regulator claims that such practices violate the Securities Regulation Code. To protect investors, the SEC has suggested that users have a 3-month window to liquidate their positions on Binance. In addition, the SEC has asked big tech companies, including Google and Meta, to block Binance-related ads to people in the Philippines, making the noose tighter on the operations of the cryptocurrency exchange in the country.
Binance and CEO Fined in Major US Court Ruling
This ban is just another string of regulatory obstacles for Binance, which now faces scrutiny from authorities across the globe. In a major legal development in December 2023, a U.S. court ruled that Binance must pay $2.7 billion and its former CEO, Changpeng “CZ” Zhao, must pay $150 million to the Commodity Futures Trading Commission (CFTC). The ruling ended a long legal dispute, which was started in March 2023 by CFTC, which accused Binance of evading federal laws and running an illegal derivatives exchange in the U.S.
The reign of the leadership of CZ came to an end in November when he resigned following a settlement with the US Department of Justice, the Treasury Department, and the CFTC. On that day, Zhao pleaded guilty to a few civil offenses and one criminal offense connected to Anti-Money Laundering laws. At the same time, his sentencing in relation to money laundering charges was postponed until April 30. He remains released on a $175 million bond. Such occurrences signal the deep regulatory scrutiny Binance had been under, influencing all its operations and strategies all over the world.
CommEX Marks Separation from Previous Owner
Under the growing regulatory pressures, Binance pulled out of the Russian market last year. The exit strategy was to sell its Russian operations to CommEX, another digital asset exchange. This determination was based on multiple factors, including the legal and compliance difficulties that Binance experienced in Russia. The divestment of its Russian branch by Binance was aimed at simplifying the company’s global operations and focusing on the markets where it could perform better.
The transition is a big change for Binance clients from Russia, as they are now directed to CommEX or other exchange platforms to do their cryptocurrency trading. This action represents a few issues that cryptocurrency exchanges are experiencing due to the complex regulatory frameworks in different countries. In addition, CommEX has pointed out its special operational model that is in no way connected with Binance’s, making a clear separation in the aftermath of the acquisition.
Read Also: ESMA Releases Final MiCA Report, Opens New Consultation
The post Philippines Cracks Down on Binance for Lack of License appeared first on CoinGape.
Read More
Philippines Cracks Down on Binance for Lack of License
The Philippine Securities and Exchange Commission (SEC) implemented controls aimed at restricting local access to the Binance cryptocurrency exchange. This step comes in response to the concerns about the illegal activities of Binance in the territory.
A publication of the SEC on 25 March refers to the regulator’s petition to the National Telecommunications Commission (NTC) to prevent users in the Philippines from reaching Binance’s website and trading platforms. The move was commented on by the Chairperson of SEC, Emilio B. Aquino, as required to protect Filipino investors, noting that the fact that the platform is still up represents a threat of losing their funds.
Binance has also been charged by the SEC for providing investment products such as leveraged trading services and crypto savings services without the necessary qualification. The regulator claims that such practices violate the Securities Regulation Code. To protect investors, the SEC has suggested that users have a 3-month window to liquidate their positions on Binance. In addition, the SEC has asked big tech companies, including Google and Meta, to block Binance-related ads to people in the Philippines, making the noose tighter on the operations of the cryptocurrency exchange in the country.
Binance and CEO Fined in Major US Court Ruling
This ban is just another string of regulatory obstacles for Binance, which now faces scrutiny from authorities across the globe. In a major legal development in December 2023, a U.S. court ruled that Binance must pay $2.7 billion and its former CEO, Changpeng “CZ” Zhao, must pay $150 million to the Commodity Futures Trading Commission (CFTC). The ruling ended a long legal dispute, which was started in March 2023 by CFTC, which accused Binance of evading federal laws and running an illegal derivatives exchange in the U.S.
The reign of the leadership of CZ came to an end in November when he resigned following a settlement with the US Department of Justice, the Treasury Department, and the CFTC. On that day, Zhao pleaded guilty to a few civil offenses and one criminal offense connected to Anti-Money Laundering laws. At the same time, his sentencing in relation to money laundering charges was postponed until April 30. He remains released on a $175 million bond. Such occurrences signal the deep regulatory scrutiny Binance had been under, influencing all its operations and strategies all over the world.
CommEX Marks Separation from Previous Owner
Under the growing regulatory pressures, Binance pulled out of the Russian market last year. The exit strategy was to sell its Russian operations to CommEX, another digital asset exchange. This determination was based on multiple factors, including the legal and compliance difficulties that Binance experienced in Russia. The divestment of its Russian branch by Binance was aimed at simplifying the company’s global operations and focusing on the markets where it could perform better.
The transition is a big change for Binance clients from Russia, as they are now directed to CommEX or other exchange platforms to do their cryptocurrency trading. This action represents a few issues that cryptocurrency exchanges are experiencing due to the complex regulatory frameworks in different countries. In addition, CommEX has pointed out its special operational model that is in no way connected with Binance’s, making a clear separation in the aftermath of the acquisition.
Read Also: ESMA Releases Final MiCA Report, Opens New Consultation
The post Philippines Cracks Down on Binance for Lack of License appeared first on CoinGape.
Read More