Binance Faces Potential Exit In The Philippines, Know The Timeline

In a recent move, the Philippine Securities and Exchange Commission (SEC) has clarified the timeline for the impending ban on Binance, alongside other unregulated crypto exchanges. The announcement, made by SEC Commissioner Kelvin Lee during a recent panel discussion, sheds light on the evolving regulatory landscape in the Philippines and its implications for crypto investors.

Notably, the recent remarks and bold steps from the Philippine SEC reflect the increased focus of global regulators on the crypto industry.

Philippines’ Clarification On Binance Ban

SEC Commissioner Kelvin Lee emphasized during the panel that the ban on Binance would be effective three months from the issuance date of the advisory, which was November 29. Meanwhile, he acknowledged the potential for an extension based on feedback but highlighted the extended duration to spare Filipino investors from unnecessary hardship during the Christmas season, a local media reported.

In addition, Lee disclosed that the initial recommendation on his desk was just one month, demonstrating a flexible approach to the evolving situation.

Notably, Commissioner Lee countered the criticism that Binance, despite being cheaper, should not face a ban. According to him, the cost-effectiveness stems from the exchange’s failure to register and comply with Philippine regulations.

Lee underscored the SEC’s mandate to remind investors to steer clear of unregistered exchanges, emphasizing the accountability and compliance costs associated with registered entities.

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Broader Regulatory Outlook

Lee also provided insights into upcoming crypto regulations, mentioning a shift from public consultation to a select group of experts reviewing and providing feedback on the draft framework. Despite having an SEC-centric draft, he expressed confidence in addressing any overlaps with other regulators through additional implementing rules and regulations.

Notably, Commissioner Lee stressed the importance of investing in registered entities, and promoting consumer protection, and urged collaboration with the growing number of virtual asset service providers (VASPs) in the country. The regulatory developments reflect the SEC’s commitment to educating and safeguarding Filipino investors in the ever-evolving crypto landscape.

For context, the Philippine SEC has revealed significant findings indicating that Binance was involved in the unlawful offering of securities within the country on November 29. According to Philippine regulations, securities, along with their issuance prices, are required to be registered with the SEC. This rule applies to both corporations and licensed dealers operating in the Philippines.

Notably, the recent challenges of Binance follow closely on the heels of the US Department of Justice (DoJ) filing a lawsuit against Binance for charges related to money laundering, with Binance CEO CZ pleading guilty in response.

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