As soon as the long-standing US criminal proceedings against Binance have come to an end, the crypto exchange is threatened with new trouble again. This time by the Philippine Securities and Exchange Commission, which is threatening to block access to the portal.
• Binance faces new regulatory trouble
• Philippine SEC could block access to Binance
• The crypto exchange assures that it will comply with local regulations
Regulators around the world are scrutinizing crypto companies. This also affects Binance, which was launched by Changpeng Zhao (CZ) in 2017 and quickly expanded into the world’s largest crypto exchange. At the end of November, Binance just agreed to a fine of $4.3 billion with the US Treasury Department – the highest fine ever paid by a crypto company in the history of the Treasury Department. In addition, founder and CEO Changpeng Zhao was fined and resigned from his position as head of Binance for money laundering.
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New official trouble for Binance
But Binance is already facing new difficulties. As “Reuters” reports, the Philippine Securities and Exchange Commission (SEC) has declared that the crypto exchange is not a registered company in the Southeast Asian island nation and is conducting its securities business without the necessary license. As a result, the authority has started the necessary process to block access to Binance’s website and applications. To ensure that users have enough time to withdraw their investments from the crypto exchange, the block should only come into force three months after the publication of the SEC recommendation on November 28th, according to the regulators.
Binance’s business partners are also in their sights
According to “Wallstreet online”, the regulatory authority also warned that business partners of the crypto exchange could also face criminal trouble: Anyone who works as a seller, broker, dealer or agent for Binance and encourages people to invest on the platform could face up to 21 years in prison /or face a fine of up to five million pesos, it said. This threat of criminal prosecution is likely to have a deterrent effect on potential partners and significantly dampen their willingness to work with Binance.
Binance wants to take countermeasures
In addition, the threat of a block is likely to place a heavy burden on users’ trust in the platform and could therefore lead to a decline in the number of users and trading volume. Binance now faces the challenge of bringing its operations into compliance with local laws and regulations.
Binance is taking the matter very seriously. According to Wall Street Online, a company spokesperson said they respect the SEC’s concerns and intend to comply with local regulations. Binance, under new leadership, has already taken proactive steps to respond to the regulator’s concerns.
Editorial team finanzen.net