The Philippine SEC will begin an investigation into the legality of Binance’s activities. The reason for this investigation is the complaint of the Infrawatch PH organization about the way Binance Philippines operates.
Infrawatch PH filed a 12-page complaint on Monday asking the Philippine Securities and Exchange Commission (SEC) to crack down on the activities of the Binance exchange in the Philippines.
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The investigation of the Philippine SEC on the activities of Binance
According to Think Tank, Binance has been operating in the Philippines for several years without authorization and approval from the relevant authorities. Terry Ridon, host of Infrawatch PH, claims that Binance has no headquarters in Manila and only uses third-party companies to serve in the country. These third party companies hire Filipino employees for technical services and customer support.
Terry Redon also pointed out to former Finance Secretary Calros Dominguez that Binance has no record with the SEC or the Central Bank of the Philippines (BSP). In the past, the Philippine Securities and Exchange Commission has unscrupulously banned online lending services.
According to Raydon, this should also happen to digital currency exchanges. He added that despite not being active in the SEC, Binance offers various types of cryptographic products such as spot transactions, margin transactions, futures contracts, crypto loans, and peer-to-peer (P2P) transactions. proposed.
In response to the complaint filed by Raydon, a Binance spokesperson told Cointelegraph that the company has been working closely with local law regulators and is seeking to secure the provision of virtual asset services and electronic money issuance licenses in the Philippines. He further added:
We are continuously in dialogue with the regulators and stakeholders in the Philippines. Our goal is to contribute to the vibrant Philippine Web 3 and Blockchain ecosystem. Last year, Binance implemented a KYC program for all users of the platform.
The news comes shortly after the Philippine Department of Trade and Industry (DTI) proposed a ban on Binance in early June, citing the BSP’s lack of regulatory clarity. The DTI was the first destination of Infrawatch PH’s complaint against Binance. The think tank also asked authorities to investigate exchanges for illegal advertising.
The news of Infrawatch PH’s lawsuit comes amid increased cryptocurrency trading activity in the Philippines. In July, the weekly trading volume of Bitcoin (BTC) against the Philippine peso on P2P cryptocurrency exchange Paxful reached an all-time high.
Acceptance of cryptocurrencies in the Philippines has been increasing in recent years and companies such as PayMaya have enabled digital currency trading. BSP and Binance did not respond to Cointelegraph’s request for an interview about the recent margin.
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