Binance is not authorized to sell or offer securities to citizens of the country, the Philippine regulator announced. The SEC states: Binance actively conducts advertising campaigns on various social Internet platforms, attracting Filipino citizens to investment and trading activities. We are talking about spot trading of cryptocurrencies, futures contracts, staking programs and other financial instruments.
Even if the platform’s operators are broker/dealers registered abroad, the securities offered must still be registered with the Philippine SEC, officials insist. The registration statement must set forth detailed information about the securities, including the issue price. These securities must be issued by an entity or a licensed dealer that is required to register in the Philippines. In addition, the issuer must have a secondary license to sell or offer securities to domestic customers. The SEC announced: Because Binance is not registered in the Philippines and operates without a license to offer any form of securities to citizens of the country.
The regulator urged Filipinos not to trade on Binance, and also called on Google and Meta corporations to stop advertising the exchange’s products to Filipino users. The SEC warned Binance promoters that they could face up to 21 years in prison and a fine of 5 million pesos (about $90,000).
In May, Philippine authorities issued a similar warning to the Gemini cryptocurrency exchange, which served local clients without registration. At the beginning of the year, the regulator announced that it would tighten oversight of the crypto industry to combat fraud.
Source: Bits
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