The Philippines Securities and Exchanges Commission (SEC) has warned the public not to deal with Binance. The warning was included in a response to Infrawatch PH, a public policy think tank working to have the exchange banned.
Earlier in July, Infrawatch PH sent a 12-page letter to the SEC demanding an investigation into Binance’s activities and a ban on the company operating in the country. According to the group, Binance was illegally offering digital assets classified as securities without first registering with the SEC.
Following its investigation, the SEC issued a warning to the public not to invest with Binance, stating that it is unregistered in the country.
According to the official statement:
“Binance is not a registered corporation or partnership. Consequently, Binance does not possess the necessary authority and or license to solicit investments as only registered corporations can apply for and be issued the necessary licenses to solicit investments. Considering these circumstances, we caution the public NOT TO INVEST with Binance.”
The commission also launched an investigation system for Binance users who may have lost money while investing in the exchange.
Infrawatch PH goes all-in on Binance
The public policy think tank has lobbied relevant Philippian regulators to ensure that Binance’s operations in the country are monitored.
In a June letter to the Philippine Central Bank, Infrawatch PH expressed concern about Binance’s operations in the country without a Virtual Asset Service Provider (VASP) license. It blamed Binance for the LUNA debacle and cited other countries where the exchange was prohibited for facilitating illegal financial transactions.
In response to their request, the group contacted the Philippine Department of Trade and Industry (DTI) to request an investigation into Binance for luring Filipino customers to invest with it through unregistered promotions shared on social media. Binance, according to the letter, showed no regard for authority and thus should be completely banned.
To read our blog on “Binance CEO CZ sues a subsidiary of Bloomberg for defamation,” click here
