Binance traders in the Philippines may be subject to criminal charges
The SEC Informs the Public That Binance Is Facing Legal Trouble in the Philippines Due to Unlicensed Operations.
The Securities and Exchange Commission (SEC) of the Philippines has come clean about Binance, a cryptocurrency exchange, operating in the nation without the required authorization or license. Notably, Binance has not been granted the necessary authorization to offer securities in the Philippines, as was announced on November 28th.
An exchange such as Binance is required by law to register with the SEC and disclose all relevant information on the securities it provides to the public prior to any public sales. Included as well are details such as the securities’ type and the issue price.
Securities issuers are required to register their services in the Philippines before issuing investments under the country’s Securities Regulation Code (SRC). A secondary license is also required for the sale of securities. The Securities and Exchange Commission has informed Binance that it does not have the proper authorization to operate in the Philippines.
In addition, the SEC found that Binance had been advertising its services in the Philippines unlawfully. Individuals associated with Binance, whether via marketing or trading on the site, may be subject to criminal prosecution under Section 28 of the SRC.
According to Section 73 of the SRC, the maximum penalty for this violation is 21 years in jail, a fine of up to 5 million Philippine pesos ($90,300), or both.