The Securities and Exchange Commission (SEC) of the Philippines has cautioned the public about Binance, stating that it lacks proper registration in the country and operates without the necessary license or authorization.
The SEC pointed out on Tuesday that Binance has been actively using social media to attract Filipinos for investment and trading, emphasizing that such promotional activities are not permitted without the required licenses.
The SEC has cautioned that people endorsing Binance in the Philippines may encounter legal repercussions as per the Securities Regulation Code. Violations could lead to a maximum fine of five million pesos (around $90,260), a potential 21-year imprisonment, or a combination of both, according to the SEC’s advisory.
In response to the SEC’s decision, reports suggest that Binance’s website and apps will be inaccessible in the Philippines within the next three months. This move aims to give local users a grace period to sell off and withdraw their assets. Furthermore, the SEC has reached out to Google and Meta, urging them to prevent online advertisements from Binance within the country.
Kenneth Stern, who was the general manager of Binance in the Philippines, left the crypto exchange this month, according to his LinkedIn profile. However, the Binance spokesperson clarified that Stern departed from the company in July, well before the SEC issued its warning.
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