The Philippines SEC has warned investors away from Binance, saying the exchange is not authorized to provide investing services in the nation.
When it comes to doing business with Binance, the Philippines Securities and Exchanges Commission (SEC) has issued a caution.
This warning was included in a reply given to Infrawatch PH, a public policy research organization advocating for the outlawing of the exchange.
Earlier in July, Infrawatch PH issued a 12-page letter to the SEC asking that Binance be prohibited from operating in the nation and seeking a probe into the exchange's actions. The organization charged that Binance, without having obtained the necessary SEC registration, was marketing digital assets that qualified as securities.
After conducting an inquiry, the SEC has warned investors from using Binance since the company is not registered with the SEC.
Official word comes as follows:
Binance is neither a corporation nor a limited liability company. Since only legally formed organizations are eligible to apply for and receive authorization to actively solicit investments, Binance is not legally able to do so.
In light of these concerns, we strongly advise against making any investments through Binance at this time.
The commission has also set up a method of inquiry for Binance customers who may have lost money investing through the platform.
All out war between Infrawatch PH and Binance
The public policy institute has been working to get Binance's operations in the Philippines inspected by the appropriate authorities.
Concerned that Binance was operating in the Philippines without the necessary Virtual Asset Service Provider (VASP) license, Infrawatch PH wrote to the Philippine Central Bank back in June to voice its disapproval. Binance was held responsible for the demise of LUNA, and references to other countries where the exchange had been banned for enabling illegal financial activity were provided.
Following up on their first inquiry, the group contacted the Philippines' DTI to request a probe into allegations that Binance had used unlicensed social media advertisements to attract Filipino investors. The letter argues that Binance has shown complete disregard for the law and should be shut down as a result.
Binance is still willing to talk.
An official for Binance has stated that the exchange is willing to collaborate with the SEC in light of the SEC's warning in order to better safeguard its users.
We welcome an open conversation with the SEC and other industry participants that share our goal of financial inclusion and empowerment, and we support the development of beneficial innovations like blockchain.
Binance CEO Changpeng Zhao hinted at plans to seek the virtual assets service provider (VASP) and e-money issuer licenses from relevant Philippian regulators in an early June press briefing.
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