The largest cryptocurrency exchange in the world, Binance, will face a ban on local user access in the Philippines due to concerns over its unlicensed operations in the country, according to the country’s Securities and Exchange Commission (SEC). The SEC has received assistance from the National Telecommunication Commission (NTC) to block access to Binance’s website and online trading platform, as stated in a document dated March 25.
The financial watchdog in the Philippines accuses Binance of offering investment products, such as leveraged trading services and crypto savings accounts, without the necessary licenses, which is a violation of the Securities Regulation Code. To allow investors time to exit their positions held through Binance, the ban will take effect within three months, according to the SEC. Additionally, the agency has requested Google and Meta to prevent Binance-related advertisements from appearing on their platforms for Filipino users.
This ban in the Philippines adds to the growing regulatory challenges faced by Binance worldwide. In December, a U.S. court ordered Binance to pay $2.7 billion in fines, while its former CEO, Changpeng “CZ” Zhao, was ordered to pay $150 million to the Commodity Futures Trading Commission (CFTC). The settlement marked the end of a lengthy legal battle in which Binance was sued by the CFTC in March 2023 for violating federal law and running an illegal derivatives exchange.
As part of a broader settlement with the U.S. Department of Justice, the Treasury Department, and the CFTC, CZ agreed to step down from his position as CEO of Binance on November 21. On the same day, Zhao pleaded guilty to multiple civil charges and one criminal charge related to Anti-Money Laundering laws. However, he is still awaiting sentencing for the money laundering charges, with his sentencing postponed until April 30. Currently, he is free on a $175 million release bond.
In other news, the allocation reduction of the DED memecoin airdrop has caused outrage within the community.