Recently, the Securities and Exchange Commission (SEC) of the Philippines made a bold move by ordering tech giants Google and Apple to remove the cryptocurrency exchange Binance from their app stores. The regulator cited concerns regarding the security of Filipino investors’ funds and accused Binance of offering unregistered securities to the public.
The SEC Chairperson Emilio Aquino expressed that the presence of Binance in the Philippines poses a threat to the country’s economy. The agency accused Binance of operating as an unregistered broker and violating the country’s securities laws. Despite warnings issued by the SEC in the past, Binance continued to promote its services in the Philippines through social media, attracting funds from unsuspecting investors.
Aquino emphasized the importance of blocking Binance from the app stores to prevent further illegal activities in the country. The SEC urged Filipinos who have investments in Binance to immediately close their positions or transfer their crypto holdings to registered exchanges in the Philippines. This proactive approach aims to safeguard the investing public from potential financial risks associated with Binance’s operations.
Legal Troubles for Binance
The decision by the Philippines SEC adds to a series of legal challenges faced by Binance globally. The company recently underwent a leadership change, appointing Richard Teng as the new CEO, following a substantial fine imposed by the U.S. government for alleged money laundering violations. Former CEO Changpeng Zhao was charged with violating the Bank Secrecy Act, leading to his resignation. Binance is also entangled in lawsuits filed by the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission for mishandling customer assets and operating an unregistered exchange in the U.S.
The SEC’s directive to remove Binance from app stores reflects a proactive stance towards protecting investors and upholding regulatory compliance. The ongoing legal challenges faced by Binance highlight the importance of due diligence and transparency in the cryptocurrency industry. Filipino investors are urged to exercise caution and adhere to regulatory guidelines when engaging with digital asset exchanges.