The Philippines’ Securities and Exchange Commission (SEC) has cautioned the public not to invest with Binance, the world’s largest cryptocurrency exchange by trading volume, in response to think tank Infrawatch PH’s request to ban Binance in the Philippines.

See related article: Philippines think tank calls for ban on Binance

Fast facts

  • In a letter responding to Infrawatch PH shared with Forkast, the Philippine SEC said Binance is not a registered corporation or partnership. “Consequently, it does not possess the necessary authority and or license to solicit investments as only registered corporations can apply for and be issued the necessary licenses to solicit investments,” said the letter.
  • The SEC also called on investor victims who may have been affected by Binance operations to file complaints for specific violations of the securities regulation code, the revised corporation code, and other applicable laws and regulations.
  • Infrawatch PH earlier asked the central bank of the Philippines and the Department of Trade and Industry to look into crypto exchange’s operations and also ban the exchange in the country.
  • A Binance spokesperson said via email that the exchange is looking to secure the VASP and EMI licenses in the Philippines and that “its goal is to contribute to the Philippines’ increasingly vibrant web3 and blockchain ecosystem.”
  • Forkast has contacted the Philippine SEC for more comment but has yet to receive a response at the time of publication.
  • Binance has faced regulatory challenges in some jurisdictions. Last month, the Dutch central bank imposed a 3.3 million euro (US$3.4 million) fine on the company. Binance founder and CEO Changpeng Zhao Monday said the exchange has spent over US$1 billion on compliance efforts.

See related article: Binance cofounder Yi He to head US$7.5B VC arm Binance Labs