Philippines SEC bans Binance, sparking worry among Filipino crypto investors

The recent ban on Binance by the Philippines Securities and Exchange Commission (SEC) has raised concerns among Filipino investors about the future of their cryptocurrencies.

Attorney Paolo Ong, representing the SEC, explained in an interview how the ban is part of broader regulatory efforts, not only targeting Binance but also including other platforms operating without compliance.

Regulatory Efforts and Concerns

Binance's situation reflects the wider regulatory crackdown on crypto exchanges in the Philippines, with approximately 14 platforms banned in 2023 for similar compliance failures.

Ong emphasized, “We’re not singling out Binance,” highlighting the SEC’s uniform approach to protecting investors.

Similarly, eToro received warnings for lacking the necessary registrations and licenses, echoing Binance's regulatory issues.

Warnings for Non-Compliance

Both platforms were cited for operating without SEC approval, underscoring the importance of compliance in the region.

For Binance users concerned about accessing their funds, Ong mentioned a "grace period" had been provided, starting from an advisory issued last November, allowing users ample time to transfer their assets out of the platform.

The SEC is in the process of drafting regulations to protect the growing crypto transactions in the Philippines, which reached $80 billion in 2023.The establishment of the Innovation Office aims to educate the public on the risks and opportunities of new financial technologies while finalizing the regulatory framework.

Despite the SEC's clear stance, neither Binance nor eToro has applied for a license to operate in the Philippines, highlighting a gap in efforts to comply with the country’s financial regulations.