The Philippines Securities and Exchange Commission (SEC) has issued a warning, indicating that individuals and entities engaging in the promotion or trading of Binance may face imprisonment of up to 21 years and fines of up to $90,000.
As per the Philippines SEC, cryptocurrency exchange Binance has been conducting operations in the country without obtaining the necessary approvals or licenses.
On Nov. 28, the Philippines Securities and Exchange Commission (SEC) cautioned the public about Binance, asserting that the exchange lacks authorization to offer or sell securities within the country.
The Philippines SEC emphasized that exchanges like Binance must register with the Commission, furnishing comprehensive information about the securities they intend to offer before making them available to the public.
This requisite information encompasses the issuance price, nature of securities, and other pertinent data, according to the Philippines SEC.
As per the Philippines’ Securities Regulation Code, securities issuers must register in the country before presenting them to the public for investment.
Beyond registration, securities issuers must also secure a secondary license to sell or offer securities to the public, according to the Philippines SEC.
“Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities as defined under Section 3.1 of the SRC.”
Under Section 28 of the Philippines Securities Regulation Code, entities involved in promoting or trading on Binance could incur criminal liability, facing both a fine of up to 5 million Philippine pesos ($90,300) and imprisonment of up to 21 years.
The world’s largest cryptocurrency exchange, Binance, has been making headlines due to the increasing regulatory scrutiny faced by both the exchange and its CEO, CZ. In a recent development, the United States regulator has imposed fines on them, with Binance being fined $4.3 billion and CZ being fined $50 million. Still, that may not be enough as they are still in search of new evidence to link CZ to a similar type of fraud as FTX’s CEO did.