It was on November 2023 when the Philippines' Securities and Exchange Commission (SEC) decided to block Binance over license violations. At the time, users were given three months to withdraw their assets on the crypto platform.
Now, PH's regulatory watchdog has officially requested tech giants Google and Apple to remove the cryptocurrency service app, Binance, from their app stores. This request underscores ongoing concerns about the legality and security of cryptocurrency operations within the country.
SEC's Concerns Over Binance Operations
The SEC has expressed serious concerns about the continued availability of Binance's services to the Philippine public, citing potential risks to the security of Filipino investors' funds.
Emilio Aquino, the Chairperson of the Philippine SEC, emphasized that Binance's presence in digital app stores poses a considerable threat due to its unlicensed status and the nature of the services it offers.
"The SEC has identified [Binance] and concluded that the public's continued access to these websites/apps poses a threat to the security of the funds of investing Filipinos," SEC Chairperson Emilio B. Aquino said in the letter, as per local newspaper PhilStar Global.
The Southeast Asian agency accused Binance of engaging in the sale of unregistered securities to Filipinos and operating without the necessary brokerage license, actions that contravene Philippine securities laws.
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Impact of Removing Binance from App Stores
By pushing for the delisting of Binance from Google and Apple's app stores, the SEC aims to curb the spread of what it deems illegal activities by Binance within the nation. Such a move is intended to protect local investors from potential adverse impacts on their finances and the broader Philippine economy.
The National Telecommunications Commission of the Philippines has also taken steps to block access to websites affiliated with Binance, indicating a concerted effort to limit the platform's reach.
Advisory to Filipino Investors
In addition to requesting the app's removal, the SEC has advised Filipino investors who currently have funds in Binance to close their positions as soon as possible.
As CNBC reports, the regulator recommends transferring any crypto holdings to personal crypto wallets or to exchanges that are officially registered in the Philippines, ensuring compliance with local financial regulations and enhancing the security of their investments.
Binance's Growing Regulatory Challenges
This action by the Philippine SEC adds to a series of regulatory challenges faced by Binance globally. Recently, the company underwent a leadership change, appointing Richard Teng, former chief of the UAE regulator Abu Dhabi Global Markets, as its new CEO.
This change followed a hefty $4.3 billion fine imposed by the U.S. government, which Binance agreed to pay to settle allegations of money laundering. Moreover, Binance is grappling with lawsuits from both the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, concerning the alleged mishandling of customer assets and operating an illegal, unregistered exchange.
Earlier this year, Apple axed Binance along with other crypto apps from its App Store in India. According to the Cupertino titan, the country did not comply with its anti-money laundering policies.
The SEC's request to Google and Apple to delist Binance reflects growing scrutiny of cryptocurrency platforms around the world, particularly concerning their compliance with local laws and the security of investor funds. This development marks a critical moment for Binance as it navigates through heightened regulatory pressures, potentially reshaping its operations and strategies in the global cryptocurrency market.
