SEC delays decision on Binance ban

MANILA, Philippines — A potential Philippine government ban on global crypto trading giant Binance was delayed due to a reshuffle at the top ranks of Securities and Exchange Commission (SEC).

The blocking of access to Binance in the Philippines was supposed to take effect three months after the SEC issued a warning last Nov. 29. The corporate regulator said the trading platform was found to be operating without the necessary regulatory licenses.

SEC Chair Emilio Aquino told the Inquirer the SEC was undergoing a “transition” with the appointment last week of Commissioner Hubert Dominic B. Guevara, who took the place of former markets and securities regulation head Kelvin Lester Lee after his term ended.

READ: PH to ban troubled Binance

“There’s an ongoing discussion [about Binance],” Aquino said. “I assure you it will be addressed”.

Any ban will require the cooperation of the National Telecommunications Commission (NTC) to block access to Binance and its apps in the country, the SEC previously said.

Blocking access, ban on Binance digital ads

It was also working with US tech giants Google and  Meta, the operator of Facebook, to halt Binance’s digital advertising efforts in the country.

The SEC earlier expressed wariness against immediately blocking Binance to allow Filipino investors ample time to close their positions and withdraw their funds. The corporate regulator continues to evaluate implications a ban could have on Filipino customer funds, a source familiar with the matter noted.

READ: Binance’s Zhao pleads guilty, steps down to settle US illicit finance probe

The SEC moved against Binance last year after the company’s CEO Changpeng Zhao pled guilty to violating US anti money laundering rules and resigned from his post.

Money laundering

Registered in the Cayman Islands, Binance is considered the world’s biggest crypto trading exchange, which allows users to buy and sell Bitcoin, Ether and other cryptocurrencies.

On March 7, 2024, the SEC said it requested the NTC to block the websites and apps of another unlicensed platform, MiTrade, for violatingt he Securities Regulation Code and Revised Corporation Code of the Philippines.

“We thank the NTC for supporting our campaign against investment scams and other predatory financial schemes toward the protection of the investing public,” Aquino said in a statement on Thursday.

“The directive of the NTC will greatly help in preventing the proliferation of investment scams. The SEC and NTC will continue to work closely together to take similar actions on other platforms facilitating illegal investment-taking activities and other predatory financial schemes,” he added.