The recent decision by the Philippines Securities and Exchange Commission (SEC) to ban Binance has sparked worries among Filipino crypto investors regarding the safety of their digital assets.
Attorney Paolo Ong, representing the SEC, explained in an interview that the ban is part of a broader regulatory initiative aimed at enforcing compliance among cryptocurrency platforms operating in the country, rather than targeting Binance exclusively.
This move reflects a wider crackdown on crypto exchanges in the Philippines, with approximately 14 platforms facing bans in 2023 due to similar compliance issues.
Ong emphasised that the SEC’s actions are not specific to Binance, indicating a consistent approach to safeguarding investors’ interests.
Similarly, eToro has received warnings for operating without the necessary registrations and licences, mirroring the regulatory challenges faced by Binance.
Both platforms were cited for operating without SEC approval, underscoring the importance of regulatory compliance in the region.
To address concerns of Binance users regarding access to their funds, Ong mentioned that a “grace period” has been provided since the issuance of an advisory in November, allowing sufficient time for users to withdraw their assets from the platform.
Meanwhile, the SEC is in the process of drafting regulations to oversee the growing crypto transactions in the Philippines, which reached $80 billion in 2023.
The establishment of the Innovation Office aims to educate the public about the risks and opportunities associated with new financial technologies while finalising the regulatory framework.
Despite the SEC’s clear stance on regulatory compliance, neither Binance nor eToro has applied for a licence to operate in the Philippines, indicating a gap in efforts to adhere to the country’s financial regulations.
This situation underscores the SEC’s commitment to protecting investors and ensuring that financial platforms operate within the legal framework established by the country.
