Philippine SEC: Binance Ban to Take Effect in February, Will Soon Release List of Unregistered Exchanges

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Philippine SEC Warns Binance

According to Bloomberg, the Philippine SEC stated in a consultation report on November 28 that Binance is not a registered company and even the world's largest cryptocurrency exchange platform has no authority to sell securities in the Philippines.

At that time, the SEC requested the National Telecommunications Commission and the Department of Communication Technology to assist in blocking access to Binance for the public. They also asked Google and Meta to prohibit online advertising of Binance to users in the Philippines on social media.

The SEC claimed that promoters may also face criminal liability:

Those promoters, brokers, agents, marketers, and KOLs of Binance who sell or persuade the public to invest in their platform within the Philippines, even if only by online means, may face criminal detention.

Philippine SEC: Binance Ban Effective in February

According to a report from the local news, SEC Chairman Kelvin Lee reiterated on December 13 that the ban on Binance will take effect three months after the initial warning.

Due to significant public feedback on the matter, Kelvin Lee was asked to clarify the situation, and he stated:

Based on the feedback, we could actually extend the deadline, but everyone should be satisfied with three months. The initial suggestion was one month, even just a week of transition period, but due to the Christmas holiday, the SEC decided not to inconvenience investors by extending it.

Kelvin Lee disclosed that aside from Binance, the SEC also warned two other unregistered exchanges, OctaFX and MiTrade, which will also face a ban after three months. Additionally, the SEC has a long list of unregistered exchanges that will be announced gradually.

The report noted that Kelvin Lee faced criticism for the Binance ban, as Binance has lower fees compared to other exchanges.

However, Kelvin Lee countered:

Of course, they are cheaper because they never bother to register in the Philippines, comply with regulations, and of course, they have no compliance costs.