The Securities and Exchange Commission (SEC) cautioned the public about investing in cryptocurrency exchange Binance as it was not registered to do business in the Philippines.
In a letter to Infrawatch PH dated August 2, 2022, the SEC said based on its initial assessment, “Binance is not a registered corporation or partnership.”
Infrawatch PH provided a copy of the corporate regulator’s letter to the media.
“Binance does not possess the necessary authority and or license to solicit investments as only registered corporations can apply for and be issued the necessary licenses to solicit investments,” the SEC said in its letter.
“Considering these circumstances, we caution the public not to invest with Binance,” it said.
The corporate regulator also encouraged patrons of Binance to file a complaint for “violation of the provisions of the Securities Regulation Code, the Revised Corporation Code and other laws, rules and regulations being enforced by the Commission.”
Sought for comment, Binance told GMA News Online it was aware of the SEC’s letter to Infrawatch PH.
“We encourage the growth of positive innovations such as blockchain and look forward to having open dialogue with the SEC and any other industry participants that share our vision of financial inclusion and empowerment,” the cryptocurrency platform said.
Binance added that it was “fully aligned with the SEC's mission to protect users and this is at the forefront of our operating principles.”
In June, Binance said it was looking to acquire Virtual Asset Service Provider and Electronic Money Issuer licenses from Philippine regulators as it plans to pour in investments in local banks and payment service providers and provide localized services in the country.
“Binance believes that the key to user protection is through regulation and developing regulatory frameworks that evolve with innovation. As a global blockchain infrastructure provider, Binance is constantly working with key stakeholders to invest in broader user education campaigns,” the cryptocurrency platform said. — DVM, GMA News