The Securities and Exchange Commission (SEC) of the Philippines has taken steps to remove applications operated by cryptocurrency giant Binance from app marketplaces accessible in the country.
In letters dated April 19 addressed to Google and Apple, the SEC requested the removal of Binance-controlled applications from its app stores.
“The SEC has identified Binance — and concluded that the public’s continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos,” SEC Chair Emilio Aquino said in the letter, stating that the sale or offer of unregistered securities to Filipinos and operating as an unregistered broker constitutes a violation of Republic Act No. 8799, otherwise known as The Securities Regulation Code (SRC).
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Securing cryptocurrency investment in the Philippines
Binance offers a platform for trading financial instruments and investment products, including spot trading using leverage, futures contracts, option contracts, cryptocurrency savings accounts, cryptocurrency staking services, and a platform for initial coin offerings. It boasts an average daily trading volume of $65 billion, covering more than 402 cryptocurrencies, with a membership of over 183 million, making it one of the largest cryptocurrency sites globally.
Caution against investing
Aquino added that removing and blocking Binance applications would prevent the further proliferation of its illegal activities in the country and protect the investing public from its detrimental effects on the economy. This move follows the SEC’s request with the National Telecommunications Commission to block access to websites used by Binance in the country to help stop its unauthorized investment solicitation activities.
The SEC cautioned the public against investing in and using Binance and has been studying the possible blocking of Binance’s website and other online presence in the Philippines since November 2023.
Despite its popularity, Binance has not obtained a license from the SEC to solicit investments from the public or to create or operate an exchange for buying and selling securities, as required by the SRC.
The SEC urges Filipino investors with investments in Binance to immediately close their positions and/or transfer their cryptocurrency holdings to their crypto wallets or accounts with cryptocurrency service providers duly registered in the Philippines.