The SEC’s decision to prohibit Binance from operating in the Philippines has left Filipino users concerned about the fate of their crypto investments. In a recent interview, attorney Paolo Ong explained the reasoning behind the ban and its implications for Binance‘s user base.
Binance Is Not Being “Singled Out”
Paolo Ong, head of the SEC’s PhiliFintech Innovation Office, appeared on One News PH to clarify why the SEC prohibited Binance and shared the SEC’s viewpoint on non-compliant crypto trading platforms.
According to Bitcoinist‘s news, the Securities and Exchange Commission (SEC) in the Philippines barred Binance’s website and operations. To safeguard Filipino investors, the regulatory body asked for help from the National Telecommunications Commission (NTC).
Following the latest developments involving the crypto exchange and its ex-CEO, Changpeng “CZ” Zhao, the SEC felt compelled to intensify their probe. According to the lawyer, this step was deemed essential by the regulatory body to ultimately halt the platform’s operations.
Despite this, the Securities and Exchange Commission (SEC) representative assured that the ban was not intended to specifically target the largest exchange globally. Rather, it represented a consistent regulatory measure against these particular platforms.
According to Ong, approximately 14 platforms were banned in 2023 in the Philippines, as such:
Binance is not being specifically targeted, but rather this action falls under our responsibility to safeguard investments for Filipino citizens.
More recently, the Philippine regulatory authority issued a warning to crypto trading platform eToro for failing to register as a corporation and obtain necessary licenses to legally function in the country.
In relation to eToro, the SEC’s representative confirmed that “eToro and Binance are equivalent in this situation. Neither is registered, and they are conducting operations in the Philippines.”
The Philippine regulatory body is initiating a public awareness campaign and alerting citizens about the upcoming changes to the national trading platform.
Can Filipino Binance Users Access Their Crypto?
An attorney shared that for eToro users, the “grace period” begins following the SEC’s announcement procedure. Investors are tasked with deciding whether to move their funds to a locally licensed and registered exchange or to their own personal wallet.
An officer was asked about Binance users unable to access their funds due to the exchange being blocked from the internet in the Philippines. Users have been unable to withdraw their holdings, and the officer was inquired about this situation.
Ong considers that the crypto exchange users had sufficient time to withdraw their funds:
Last November, we warned users about the need to withdraw their funds or investments from our platform within a three-month notice. However, we granted an extension, allowing more time for those who needed it.
The SEC officer made it clear that the regulatory body does not approve of any specific way for investors to withdraw their funds following the lifting of the holding order.
Based on the lawyer’s information, approximately $80 billion worth of crypto transactions occurred in the Philippines in the year 2023. Given the substantial amount involved, the Securities and Exchange Commission (SEC) is taking precautions to safeguard Filipino investors by developing regulations for cryptocurrencies.
Nonetheless, these regulations take time, as Ong explained, so:
The Securities and Exchange Commission (SEC) established an Innovation Office to provide guidance on both the potential risks and benefits associated with emerging technologies in the financial sector.
During the interview, the SEC hadn’t received any official application from Binance or eToro seeking a license at that point. As reported by the lawyer, they hadn’t taken steps to adhere to the local rules yet.
Read More
- BTC PREDICTION. BTC cryptocurrency
- LUNC PREDICTION. LUNC cryptocurrency
- MNT PREDICTION. MNT cryptocurrency
- USD PHP PREDICTION
- SOL PREDICTION. SOL cryptocurrency
- GLM PREDICTION. GLM cryptocurrency
- USD COP PREDICTION
- BCH PREDICTION. BCH cryptocurrency
- USD MYR PREDICTION
- CKB PREDICTION. CKB cryptocurrency
2024-04-09 06:12