The Securities and Exchange Commission (SEC) of the Philippines blocked cryptocurrency giant Binance after discovering that the exchange was operating an investment and trading platform without the necessary licences.

The SEC approved a formal request to the National Telecommunications Commission (NTC) to block the exchange's website and other related webpages during a meeting held on 12 March.

In a letter to the NTC, SEC Chairman Emilio Aquino mentioned that "the SEC has identified the aforementioned platforms and believes that the public's continued access to these websites or applications poses a threat to the security of investment funds."

Promotions

According to the SEC, Binance did not obtain the required licence from the SEC, despite defining itself as a trading institution offering a variety of investment products, including spot trading, futures contracts and cryptocurrency savings accounts. This violates Philippine regulations, which require licences to solicit investments from the public and to operate a stock exchange.

The SEC noted that Binance had an average daily trading volume of $65 billion across 402 cryptocurrencies and more than 183 million member users. The platform ran an aggressive social media campaign to attract Filipinos to its investment and trading activities.

Binance's global regulatory hurdles

Last November, the SEC warned the public against investing in Binance, and the agency has been working with the National Trade Commission to block websites that illegally offer investments in the Philippines. Previous actions have included blocking the websites and apps of other platforms such as OctaFX and MiTrade, highlighting the regulator's determination to protect the investing public.

Notably, the SEC ensures that investors have sufficient time to exit the platform and transition their portfolios to authorised investment products and platforms.

Enforcement increases exchanges

As we all know, exchanges are markets that support the trading of derivatives, commodities and services.

Globally, Binance faces increasing regulatory challenges. From France to Nigeria, Binance's operations face increasing scrutiny and regulatory pressure. Notably, Nigeria's SEC has also highlighted concerns about Binance's cryptocurrency trading activities.

In addition, Binance's operations in the U.S. have faced intense scrutiny, leading to major lawsuits and multi-billion dollar settlements, and the exchange's formal exit from the U.S. market, with its former CEO Changpeng Zhao stepping down.