The Securities and Exchange Commission (SEC) of the Philippines has introduced new rules to prevent people in the country from using the cryptocurrency exchange Binance. This decision comes as a response to worries about Binance possibly breaking the law in the Philippines.

On March 25, the SEC made an announcement asking the National Telecommunications Commission (NTC) to stop Filipinos from accessing Binance's website and trading services.

Tightening Control

The Chairperson of the SEC, Emilio B. Aquino, explained that these actions were crucial to protect Filipino investors from potential financial losses if Binance continues to operate in the country.

The SEC has accused Binance of offering financial services without the necessary licenses, like crypto savings and leveraged trading, which goes against the country's Securities Regulation Code.

To safeguard investors, the SEC has suggested a three-month period for customers to sell their assets on Binance. Additionally, the SEC has urged major internet companies like Google and Meta to stop showing ads related to Binance.

Binance is facing scrutiny from regulators worldwide, with this latest restriction adding to their legal troubles. In December 2023, a U.S. court ordered Binance and its former CEO Changpeng Zhao to pay fines totaling $2.85 billion, marking a significant legal development.

CommEX, after acquiring Binance's Russian operations, has announced a temporary halt to its trading platform. Users will be given a clear timeline for the closure, which will happen gradually to ensure a smooth transition.

What are the charges levied against Binance by the SEC

The Securities and Exchange Commission (SEC) has charged Binance with several violations, including mishandling customer funds, lying to regulators, and failing to register under securities laws. The SEC alleges that Binance mixed billions of dollars in customer funds and sent them to a separate company controlled by Binance's founder, Changpeng Zhao.

Additionally, Binance was accused of misleading investors about the adequacy of its systems to detect manipulative trading and efforts to restrict U.S. users from trading on its international platform. The SEC also claimed that Binance unlawfully offered exchange, broker-dealer, and clearing agency services without registering with the SEC, engaging in unregistered offers and sales of crypto asset securities. Furthermore, the SEC alleged that Binance and Changpeng Zhao were intimately involved in directing U.S. business operations, circumventing controls, and actively soliciting U.S. investors despite previous announcements not to serve them. These charges highlight a significant legal battle between Binance and U.S. regulators regarding compliance and investor protection.