NTC directs internet service providers to block access to Binance
MANILA, Philippines — Internet service providers (ISP) are instructed to “immediately” block access to Binance from the Philippines, a move that will finally ban the operations of the online cryptocurrency exchange flagged for operating without requisite licenses.
In a statement on Tuesday, the National Telecommunications Commission (NTC) said it had issued a memorandum directing ISPs to prevent accessing the crypto platform in line with request by Securities of Exchange and Commission (SEC) to do so.
“The ISPs were given by the NTC a period of not later than five days from receipt of said memorandum to submit a report on the action taken regarding said directive,” the NTC said.
As of writing, at least one ISP has complied with the NTC order.
The SEC on March 25 announced it has decided to proceed with the banning of Binance for not securing license to create or operate an exchange for buying and selling of securities—a violation of the Securities Regulation Code.
READ: SEC pushes forward efforts to ban Binance in PH
To recall, the SEC gave warning against transacting via the platform as early as November last year, encouraging traders to withdraw their holdings.
Before the regulator made its pronouncement, former Binance chief Changpeng Zhao told the Philippine media in 2022 they were eyeing to apply for licenses as a virtual asset services provider—an entity that facilitates the transfer or exchange of digital assets—to offer more localized products. This, as he highlighted the importance of regulation in allowing greater adoption for crypto.
Zhao has since left his post after pleading guilty to violating US anti-money laundering laws. Longtime Binance executive Richard Teng has assumed Zhao’s position.
Binance ban backed
FinTech Alliance PH, an industry group of financial technology players, previously told Inquirer that banning the operations of the world’s biggest crypto exchange in the country was a way to protect the local traders.
“It’s all about consumer protection and education. The public is being guided against transacting with any unregistered exchanges and trading platforms,” FinTech Alliance PH founding chair Lito Villanueva said.
The SEC reported that Binance—which offers over 402 crypto items—sees average daily trading volume of $65 billion. It has a subscriber base of more than 183 million across the world.
READ: PH digital trade groups backs ban on Binance
The popularity of play-to-earn games has driven the adoption of crypto in the Philippines, according to blockchain analysis firm Chainalysis. It even became a source of income for some Filipinos during the pandemic when unemployment rate was high due to strict lockdown.
Recently, popular crypto Bitcoin has been gaining traction following the approval of Bitcoin exchange-traded funds in the United States, enabling the digital assets to be traded via traditional regulated securities exchanges.
A price surge is also projected with the programmed Bitcoin halving, a situation whereby the production of new digital assets will be slowed down, driving up the cryptocurrency value.
