In an effort to protect investors in the Philippines, the Philippines Securities and Exchange Commission (SEC) has ordered both Google and Apple to remove the Binance app from their app stores for users in the country. The SEC stated that it is working with these tech giants to remove applications operated by cryptocurrency giant Binance, citing concerns over the security of funds for Filipino investors. The SEC believes that Binance is selling or offering unregistered securities to locals, which is a violation of the country’s securities regulations. By removing the Binance app from digital app marketplaces, Google and Apple can help prevent the further proliferation of its illegal activities, which could have detrimental effects on the local economy.
This move by the SEC comes after it had already blocked access to Binance websites on March 25 in collaboration with the National Telecommunications Commission (NTC). The SEC has been warning the public against investing in Binance since November 2023, stating that the crypto exchange has yet to secure a license to solicit investments or operate as a securities exchange. The SEC’s official ban on Binance was enforced on April 8, and users were given a three-month period to withdraw their funds from the exchange. After this period, the SEC does not endorse any methods for retrieving funds.
The crackdown on unlicensed crypto trading platforms in the Philippines began on February 21, with the SEC and NTC taking action to block and ban these platforms. At that time, Binance remained unaffected. Binance has faced regulatory-related issues around the world, including a new class-action lawsuit in Canada for alleged violations of local securities laws. Despite these challenges, Binance announced on April 18 that it would be returning to India after paying a $2 million fine for previous non-compliance with local regulations. Binance received its crypto license in Dubai, also known as the coveted Virtual Asset Service Provider (VASP), after its co-founder gave up his voting power in the exchange’s local entity.
How can the SEC take such a drastic step without solid evidence? They should be more transparent about their concerns instead of simply banning the app.
Binance’s return to India after settling non-compliance issues shows their willingness to rectify past mistakes. Compliance should never be disregarded. 💯
It’s disappointing to see the SEC failing to recognize the potential benefits of cryptocurrencies. They should find alternative solutions rather than imposing bans.