Cryptocurrency exchange Binance has been operating in the Philippines without the necessary approvals or licenses, according to the local securities regulator.
Philippine Securities and Exchange Commission (SEC) release A warning was issued to Binance on November 28, informing the public that the exchange does not have the authority to sell or issue securities in the country.
The announcement emphasized that exchanges like Binance must apply for registration and provide detailed information about the securities being offered before selling them to the public. These details include the issue price, nature of the security and other data.
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The Philippines’ Securities Regulatory Code (SRC) also requires issuers of securities to be registered in the country before making investments. Issuers should also obtain a secondary license to sell or issue securities to the public, the statement noted, adding:
“According to the Commission’s database, the operator of the Binance Platform is not registered as a company in the Philippines and does not have the necessary licenses and/or authorizations to sell or offer any form of securities as defined in Article 3.1 of the SRC.”
In addition to operating without the necessary licenses, the SEC believes Binance has been illegally promoting its services in the country. The regulator warned that entities involved in promoting or trading on Binance could be held criminally liable under Article 28 of the SRC.
The statement noted that this is a criminal offense under Section 73 of the SRC and is punishable by a fine of up to 5 million Philippine pesos (US$90,300), or 21 years in prison, or both.
Binance did not immediately respond to Cointelegraph’s request for comment.
This is a developing story and more information will be added as it becomes available.
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