The Philippines’ financial regulator has decided to restrict access for local users to Binance, the world’s largest cryptocurrency exchange. This move stems from concerns over Binance’s unlicensed operations within the country.

In a statement, the Securities and Exchange Commission (SEC) of the Philippines noted that it collaborated with the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform. The SEC explained that such continued access could jeopardize the financial security of Filipino investors.

Reasons for the Ban

The ban is based on allegations that Binance offers investment products, including leveraged trading services and crypto savings accounts, without obtaining the necessary licenses. This practice contravenes the Securities Regulation Code.

The ban will come into effect by June 2024 to allow time for investors to close their positions on Binance. The SEC also requested that Google and Meta prevent Binance-related advertising from appearing in Filipino users’ feeds.

Regulatory Challenges Faced by Binance

The Philippines is not the only jurisdiction where Binance faces regulatory challenges. In early March 2024, Nigerian authorities imposed a significant USD 10 billion fine on the exchange for alleged manipulation of exchange rates and illegal operations in Nigeria.

Furthermore, two foreign executives from Binance have been arrested on charges including money laundering and financial terrorism. This escalates ongoing issues related to the platform’s regulatory compliance and potential economic impact.

In November 2023, Binance agreed to a USD 4 billion settlement with US authorities in connection with an investigation by the Department of Justice (DOJ). The probe involved multiple agencies including FinCEN, OFAC, and the CFTC. As part of this resolution, Binance’s CEO pleaded guilty for not maintaining an effective anti-money laundering program and subsequently stepped down from his role.