SEC warns public not to invest in Binance

The Philippine Securities and Exchange Commission (SEC) has warned the public against investing in cryptocurrency exchange Binance, in response to an attempt by policy think tank Infrawatch PH to entice the SEC to take action against the exchange.

In a letter from SEC Director Oliver Leonardo, the public Suggest Avoid investing in exchanges. Additionally, the SEC noted that, based on a preliminary assessment, Binance is not a registered company. Leonardo wrote:

“Binance does not have the necessary authority and/or license to solicit investment, as only a registered company can apply for and obtain the necessary license to solicit investment.”

The letter emphasizes that Binance violated laws such as the Securities Regulatory Act and the Revised Corporations Act enforced by the SEC. Therefore, the SEC also mentioned that if there are any victims, it encourages them to come forward and file a complaint against the exchange.

Terry Ridon, Convenor of Infrawatch PH, commented that this clarifies the government’s stance on the operation of crypto platforms. “The advice provides immediate protection for Binance users who may lose funds by investing in unlicensed platforms,” he said.

Binance told Cointelegraph in a statement that they are aware of the letter the SEC sent to Infrawatch PH and that they are aligned with the SEC’s mission to protect users. According to an exchange spokesperson, they are open to dialogue with the SEC. They explained that Binance believes in developing a regulatory framework that evolves with innovation. Binance stated:

“We encourage the development of positive innovations like blockchain and look forward to having an open dialogue with the SEC and any other industry players who share our vision for financial inclusion and empowerment.”

In June, Binance expressed interest in obtaining a virtual asset service provider (VASP) license and an e-currency issuer license in the Philippines. Binance CEO Changpeng Zhao said the exchange is interested in expanding its operations in the country.

related: Binance gets VASP registration for its Spanish subsidiary from Spanish bank

In the same month, Infrawatch PH start It hits Binance by liaising with the Central Bank of the Philippines. In addition, lobby groups have also worked hard to ask the country’s Department of Trade and Industry (DTI) to ban Binance for allegedly illegal promotions. However, DTI responded that they were unable to enforce any ruling against the exchange.