Infrawatch Ph. ADVOCACY Group said it has obtained a statement from the Securities and Exchange Commission (SEC) warning the public against investing in Binance, the world’s largest cryptocurrency exchange.
“Based on our initial assessment, Binance is not a registered company or a partnership. Thus, Binance does not have the necessary authority or license to solicit investments as only registered companies can apply for and issue the necessary licenses to solicit investments,” said Infrawatch, which was sent to the agency late last month.
Terry L. Ridon, the group’s meeting organizer, said they welcome the significant development, as it provides policy clarity on the government’s stance on the country’s unauthorized and unlicensed cryptocurrency platform operations.
“This advisory provides immediate protection for Binance users who may have lost money investing in an unlicensed platform. It also provides a way forward on how to ensure greater accountability in the crypto sector.”
“As more Filipinos participate in this emerging sector, it is the duty of the government to ensure that all service providers follow strict regulatory mechanisms and undertake commitments that protect the investing public,” he added.
However, the SEC’s response provided more advice than the model not to invest in a company not registered with the agency. It has yet to say what concrete plans it has to limit Binance’s operations in the Philippines.
Infrawatch’s letter to the Securities and Exchange Commission cited press reports that Binance has about 3.4 million users in the Philippines. The group added that Binance Holdings Ltd. It was operating its namesake exchange in the Philippines without a permit or license from the SEC and Bangko Sentral ng Pilipinas (BSP).
Binance offers products and services such as cryptocurrency exchange, peer-to-peer trading, spot and margin trading, and cryptocurrency derivatives such as futures, options, and cryptocurrency loans.
The company does not have an office in the Philippines and only uses third party companies that hire Filipinos for technical and support services.
As former Finance Minister Carlos J. Dominguez III the public from investing in Binance because he has no records of registration with the regulators.