The Philippines has slammed the brakes on Binance, with the Securities and Exchange Commission (SEC) flexing its regulatory muscle. In a notice published on March 25th, the SEC revealed plans to block Filipinos from accessing the crypto exchange giant.

This move follows accusations that Binance has been offering Filipinos investment and trading opportunities without the necessary license. The SEC isn't stopping there. They've also requested the National Telecommunication Commission (NTC) to block access to Binance's website, apps, and related web pages.

But wait, there's more. The SEC has taken aim at Binance's marketing blitz, urging tech giants Google and Meta to restrict all crypto exchange-related ads in the Philippines. According to the SEC, these marketing campaigns and trade offerings were illegal from the get-go.

The Philippines SEC cites the lack of a license from their agency, a violation of Republic Act No. 8799 or the Securities Regulation Code (SRC). The SEC warns residents that Binance's crypto promotions could even lead to criminal charges for those involved.

This crackdown isn't a sudden move. The SEC issued a warning notice to Binance back in November 2023. The Philippines are giving their citizens a three-month grace period to close their Binance accounts before the ban goes into full effect.

The SEC Chair, Emilio B. Aquino, expressed concerns about the security of Filipino investor funds, citing the lack of regulation surrounding Binance. This ban sends a clear message to other unregulated exchanges operating in the Philippines – get licensed or get out.

Binance's Regulatory Blues

The Philippines aren't the only ones giving Binance the side-eye. The crypto exchange has faced regulatory heat worldwide. In 2023, the US charged Binance with operating an illegal digital asset derivatives exchange and dodging federal laws.

Things escalated further with the SEC accusing Binance and its former CEO, Changpeng Zhao (CZ), of running unregistered exchanges and selling securities without proper authorization. This culminated in a guilty plea by Binance and CZ on November 21st, 2023, to charges including anti-money laundering violations.

CZ stepped down as CEO as part of a deal with the US Department of Justice (DOJ), and the courts ordered Binance and CZ to pay hefty fines. CZ is currently awaiting sentencing for his role in the money laundering charges.

The Takeaway

The Philippines' crackdown on Binance is a stark reminder for crypto exchanges to play by the rules. With regulatory scrutiny intensifying worldwide, getting licensed and operating within legal frameworks is no longer optional.