Philippine securities regulator warns public against Binance after 12-page complaint


Global exchange Binance is again under the watchful eye of regulators, with the Philippine Securities and Exchange Commission (SEC) warning citizens against investing in the exchange.

“According to our initial assessment, Binance is not a registered company or partnership,” Oliver O. Leonardo, the agency’s head, said in the letter.

It is further acknowledged that only registered organisations are eligible to apply for and obtain the necessary licenses to solicit investment. The letter is in response to a 12-page complaint filed last week by Philippine think tank Infrawatch PH, which urged the U.S. Securities and Exchange Commission to take action against Binance for breaches.

Exchanges must comply with RTC rules in the Philippines

Infrawatch PH had previously sent a letter to Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines, requesting that Binance be banned from operating in the country without the necessary authorization.

“Virtual Currency Exchange Guidelines” under Circular No. 944 of 2017 is earlier release BSP reiterates that venture capital does not have legal tender status and is neither issued nor guaranteed by any government.but it Also said, “To be eligible to engage in VC communication activities, a Certificate of Registration (“COR”) is required to operate as an RTC [Remittance and Transfer Company] Must be obtained from BSP. “

The basic requirements of the RTC include registration, minimum capital requirements, internal controls, regulatory reporting and compliance with rules such as the Anti-Money Laundering Act.

Meanwhile, the SEC has asked “victims of Binance” to file a notarized complaint with the department, while warning the public against using the platform for investing.

Binance claims to have spent $1 billion on compliance efforts

That being said, Binance founder and CEO Changpeng Zhao recently claimed that the platform spent more than $1 billion on compliance efforts, while denying that revenue was lost due to the stricter know-your-you situation. – Customer (KYC) specification.

The announcement comes as Binance is preparing emission ‘Binance Account Bound (BAB), the first Soulbound Token (SBT) built on the BNB Smart Chain. The platform explained that the token will effectively verify the user’s verification status on Binance after completing KYC, and will be available to third-party protocols.

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