Philippines ban on Binance exchange takes effect three months later

The Philippines’ financial regulator will block local users from accessing Binance, the world’s largest cryptocurrency exchange, citing concerns about the company’s unlicensed operations in the country.

According to a March 25 filing, the country’s Securities and Exchange Commission (SEC) said it received assistance from the National Telecommunications Commission (NTC) to block access to Binance’s website and online trading platform.

“The SEC has identified the aforementioned platforms and concluded that the continued public access to these websites/apps poses a threat to the safety of funds of Filipino investors,” SEC Chairman Emilio B. Aquino said in a letter to the NTC.

The Philippines’ financial regulator accused Binance of violating the Securities Regulation Act by offering leveraged trading services and investment products such as cryptocurrency savings accounts without obtaining the required licenses.

According to the SEC, the ban will take effect within three months to give investors time to exit positions held through Binance. The agency also asked Google and Meta to prevent Binance-related ads from appearing on their platforms for users in the Philippines.

The Philippines’ ban is the latest regulatory blow to Binance, which has faced increasing scrutiny around the world.

In December last year, a U.S. court ordered Binance to pay $2.7 billion to the Commodity Futures Trading Commission (CFTC) and ordered its former CEO Changpeng “CZ” Zhao to pay $150 million.

The settlement marks the end of a long-running lawsuit against Binance, which was sued by the U.S. Commodity Futures Trading Commission (CFTC) in March 2023 for evading federal law and operating an illegal derivatives exchange.

On November 21, CZ agreed to step down from his position at the helm of Binance as part of a broader settlement with the U.S. Department of Justice, Treasury Department, and CFTC.

That same day, Zhao Changpeng pleaded guilty to multiple civil charges and one criminal charge related to anti-money laundering laws.

Zhao Changpeng is still awaiting sentencing on money laundering charges. His sentencing has been postponed until April 30. He is currently free on $175 million bail.