The post Philippines SEC Warns Binance, Potential Ban Looms; How Will it Impact Crypto Users? appeared first on Coinpedia Fintech News
According to a local news report, the Philippines is poised to block Binance due to regulatory concerns, casting doubt on the exchange’s future in the Asian nation. However, in late November, the SEC issued a warning to Binance, citing they are operating without a license and tracked unauthorized sale of securities. If Binance fails to address these issues by the end of February, officials threaten to block its operations, raising questions about the impact on Filipino users.
Worst-case scenario: Philippines Can Bans Binance
The SEC is currently evaluating the crypto impact of the ban, including the fate of Filipino users’ funds. However, Binance has not publicly responded, leaving the local crypto community puzzled. Despite attempts to seek clarification from the SEC, there has been no concrete response, which hangs Binance’s future in the dark.
After pleading guilty in the US for breaking banking laws, and now this ban; Binance is going through a rough patch right now. The company was fined $4.3 billion and changed its leadership to better follow the rules. Shortly after, the Philippines became a test for new CEO, Richard Teng and Binance 2.0. However, Binance has yet to address the concerns raised by regulators.
Binance’s silence is creating a FUD situation in the Philippines, right now there is no clarity from the SEC nor Binance on the future course of action.
Can SEC Block Binance without Order?
The Philippine regulators criticized Binance for using influencers and salespeople to promote the exchange. As a rule in the country, promoters face severe penalties, including imprisonment and heavy fines. The SEC also urged Google and Meta to stop advertising to Filipino users.
In response, Kelvin Lee, the SEC head, said in December that a potential ban on Binance is expected to be applied three months after the advisory, with the possibility of an extension. Many expect a ban around February 29, but lawyer Rafael Padilla says a court order is needed, leaving the crypto community uncertain about its future impact.
Impact on Crypto Community
When Binance came to the Philippines in 2019, it changed the local crypto scene by lowering transaction fees and generating a lot of trade activity. A possible ban could mess up the current situation and make it harder for people to find cheap ways to trade crypto. The crypto community is waiting for more information from the government. The ban should go into action by the end of February, but this has not been confirmed yet.