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Highlights
- Binance users in the Philippines are rushing to liquidate their holdings.
- USDT sold at discounts of 5% to 7% on Binance's P2P marketplace.
- Users face steep on-chain fees amid the rush to withdraw funds.
In the wake of regulatory hurdles in the Philippines, Binance, the leading crypto exchange, faces a tumultuous period as users rush to liquidate their holdings at significant discounts. Meanwhile, the recent ban by the country’s Securities and Exchange Commission (SEC) has prompted a flurry of activity among Binance investors, with reports indicating substantial discounts on USDT and concerns over exorbitant on-chain fees.
Binance Philippines Users Liquidating Holdings
The leading crypto exchange, Binance has faced a set of regulatory hurdles in recent days, with the Philippines SEC proposing a ban being the latest. Notably, as CoinGape Media reported earlier, the exchange also had a setback in Nigeria.
Meanwhile, following the SEC’s request to block access to Binance in the Philippines, users have been scrambling to withdraw their funds from the platform, fearing prolonged restrictions and uncertainty. The ban, triggered by Binance’s failure to obtain an operating license in the country, has led to a rush among investors to offload their assets at discounted rates, particularly USDT, which is being priced at a 5% to 7% markdown on the Binance P2P marketplace.
DL News reported that according to Luis Buenaventura, an assistant vice president at GCash and co-founder of crypto exchange platform BloomX, vendors are offering USDT at discounted rates as they seek to liquidate their inventories amid regulatory pressure. Additionally, users are grappling with steep on-chain fees, with some transactions incurring fees exceeding $12, further exacerbating the sell-off frenzy.
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Uncertainty Looms Over Potential Future Moves
The regulatory crackdown in the Philippines has cast a shadow over Binance’s future in the country, with users facing uncertainty regarding the accessibility and legality of the platform. Despite warnings from the SEC dating back to November, the recent ban has caught many users off guard, triggering confusion and frustration within the crypto community.
Meanwhile, Rafael Padilla, legal director at Farcove Consulting in Manila, raised concerns over the legality and fairness of blocking Binance’s website while allowing local exchanges to operate freely. In addition, Padilla emphasized the need for clarity and legal recourse, suggesting that challenging the SEC’s decision in court may determine the platform’s fate in the Philippines.
However, as users navigate through the uncertainty surrounding Binance’s operations in the Philippines, questions linger about the platform’s ability to address regulatory concerns and regain the trust of investors. With the ban enforcement still in its early stages, the coming days will likely bring further developments, shaping the future landscape of crypto trading in the Philippines.
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