SEC: “BINANCE is NOT AUTHORIZED TO SELL or OFFER SECURITIES to the public in the Philippines.”
SEC – The Securities and Exchange Commission has issued an advisory against online cryptocurrency exchange Binance for unauthorized operations in the Philippines.
In its advisory, the Commission informed the public that Binance is not authorized to sell or offer securities in the country. Binance may accessed or downloaded through different modes – including its website and its app on Google PlayStore (for Android devices), and on Apple App Store (for iOS devices).
Citing reports and information gathered by SEC, the Commission said that Binance has been actively employing promotional campaigns on different social media platforms in order to attract and entice Filipinos to engage in trading and investment activities using its platforms.
Binance, according to the Commission, claims to operate a facility to trade financial instruments and also offers investment products.
These includes spot trading using leverage, cryptocurrency savings accounts, option contracts, futures contracts, cryptocurrency staking services, and a platform for initial coin offerings.
According to the Commission, the activities of Binance require adherence to specific regulations under the Securities Regulation Code (SRC) in the Philippines despite being a registered broker/dealer overseas – including the registration of securities with the Commission, operating as a registered corporation or licensed dealer in the country, and possessing a secondary license for public offerings.
The Commission added that based on its database, the operator of Binance platform is not registered as a corporation in the country and also operates without the necessary authority and/or license to sell or offer any form of securities, to engage in the business of buying or selling securities or as a dealer or broker, or to create or operate an exchange for the buying and selling of securities.
Also, the Commission advised the public to exercise caution before investing in those kinds of unregistered online investment platforms and their representatives.
“In addition, those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of the BINANCE platform in selling or convincing people to invest in this platform within the Philippines even through online means may be held criminally liable under Section 28 of the SRC and be penalized with a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC (SEC vs. Oudine Santos G.R. No. 195542, 19 March 2014),” the Commission said in its advisory.
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