The Philippines’ financial regulatory body has decided to restrict local users from accessing Binance, the largest cryptocurrency exchange in the world. This action is based on concerns regarding Binance’s unauthorized operations within the country.
According to a document from the Securities and Exchange Commission (SEC) dated March 25, the regulator sought assistance from the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform.
The SEC alleges that Binance offers investment products, including leveraged trading services and crypto savings accounts, without the proper licenses. This is a violation of the Securities Regulation Code.
To provide investors with sufficient time to exit their positions held through Binance, the ban will be implemented within three months, as stated by the SEC. Additionally, the agency has requested that Google and Meta block Binance-related advertisements on their platforms for Filipino users.
This prohibition in the Philippines is the latest setback for Binance, as it faces increasing regulatory scrutiny worldwide.
In December, a U.S. court ordered Binance to pay $2.7 billion, while its former CEO, Changpeng “CZ” Zhao, was directed to pay $150 million to the Commodity Futures Trading Commission (CFTC). This settlement marked the resolution of a lengthy legal case against Binance, which was sued by the CFTC in March 2023 for evading federal law and operating an illegal derivatives exchange.
On November 21, CZ agreed to step down from his position as CEO of Binance as part of a broader settlement with the U.S. Department of Justice, the Treasury Department, and the CFTC. On the same day, Zhao pleaded guilty to various civil charges and one criminal charge related to Anti-Money Laundering laws.
Zhao is currently awaiting sentencing for money laundering charges, which has been postponed until April 30. He is currently free on a $175 million release bond.