- Philippines regulators claim that Binance operated as an unregistered entity.
- Binance to suspend operation in the Philippines.
- The Philippines authorities directed Google and Apple to eliminate the Binance app from their app stores.
In an official communication, the Securities and Exchange Commission in the Philippines issued directive orders to giant tech firms Google and Apple. The SEC ordered Google and Apple to scrap the Binance application from their app stores.
The directive aimed to safeguard Philippine investors from exploitative activities that might lead to financial losses. In an April 23 update, the SEC pledged to collaborate with renowned tech firms to remove the Binance mobile app from their platforms entirely.
Binance to Suspend Operation in the Philippines
The market regulators claimed to share a series of letters with tech firms about removing Binance from their local marketplace. The regulators claimed that the operation of Binance would harm Filipino investors. They argued that Binance’s operation in the region threatened the financial sector.
A statement from the SEC chair Emilio B. Aquino stated that the operation of Binance in the Philippines was unlawful. Citing the securities law, Aquino argued that the buying and selling unregistered securities in the region was illegal.
Also, the executive admitted that the operation of unauthorized brokers breached the securities regulations. The official described the removal of Binance from the local marketplace as a strategic step in addressing illegal activities in the Philippines.
Aquino regretted that failure to suspend the operation of the Binance app would have a detrimental effect on the national economy. The new directives came days after the SEC and the National Telecommunication Commission (NTC) restricted access to the Binance website.
Philippines Authority to Collaborate with Tech Firms to Halt Binance Operations
In March, the Philippine regulators claimed that the operation of Binance was unauthorized. The financial regulators in the region accused Binance of violating the Securities Regulation Code by offering investment products, including leveraged trading services and crypto saving accounts, without completing the necessary registration processes.
Based on the risk associated with Binance’s operation in the Philippines, the regulators advised the regulators to be careful while investing in offshore crypto exchanges such as Binance. The government authority added that the controversial crypto exchange must obtain a license to operate compliantly in the region.
In a subsequent report dated April 8, the SEC official stated that the authority had issued three months for Filipino investors to withdraw their funds from the platform. After the extension period for the withdrawal lapsed, the regulators claimed that Binance’s operation would be permanently suspended in the region.
The Binance users in the region are advised to expedite the withdrawal process to avoid losing their funds. The regulators claimed that the attempt to suspend Binance’s operation aims to restrict unlicensed crypto exchanges from operating in the region.
Binance Facing Legal Action in Asian Countries
Inspired by the desire to safeguard customers from unlawful activities, regulators vowed to ban the operation of non-compliant firms. The Philippine move mirrors the regulatory action taken against Binance in India, Thailand, and Canada.
In an April 23 publication, the Canadian authorities issued a new class action lawsuit against Binance for violating the securities regulations. The Canadian market regulators accused Binance of facilitating the buying and selling of crypto derivatives to institutional clients without completing the primary regulatory registration.
The lawsuit came when Binance accounts for 58% of total spot trading volumes for centralized exchanges. Binance has also cemented its market position in the derivatives markets, followed by Bybit and OKX.
Having attained the sustainable customer base and desired market position, the crypto exchange vowed to leave Canada by next month to pursue other markets. Besides expanding to other regions, Binance has demonstrated its commitment to comply with the existing law.
On April 18, the Binance team agreed to settle a $2 million penalty with the Indian authority. The controversial crypto exchange pledged to comply with Indian law and return to the region.
The Binance return to India marked a significant milestone for the exchange to expand its regulatory portfolio. Earlier this week, the Binance team secured a crypto license to operate as a virtual assets services provider (VASP) in Dubai.