Philippines' SEC to restrict Binance access following CEO's guilty plea

• Philippines’ SEC initiates measures to block access to Binance.
• Former Binance CEO, Changpeng Zhao, recently stepped down and pleaded guilty in the US.
• The Philippines’ SEC advises Filipino users to withdraw investments from Binance within three months.

The Philippines’ Securities and Exchange Commission (SEC) has set in motion measures to restrict access to Binance, the world’s largest cryptocurrency exchange.

This move follows the recent resignation of Binance’s CEO, who pleaded guilty to breaching US anti-money laundering laws. Changpeng Zhao has also resigned from the Binance.US board.

Binance accused of unregistered operations

The Philippines’ SEC asserts that Binance, the crypto giant, is operating without proper registration and lacks the required license to offer securities in the Philippines. The regulatory body has issued an advisory, outlining the removal of access within three months to allow Filipino users ample time to withdraw their investments.

In its advisory, the Philippines’ SEC has urged major online platforms, including Google and Meta, to cease displaying advertisements from Binance within the Philippines. Simultaneously, the SEC warns individuals involved in promoting or convincing others to invest in the platform that they may face criminal liability.

The move by the Philippines’ regulatory body comes days after the former Binance CEO Changpeng Zhao stepped down after pleading guilty to deliberately causing the exchange to fail in maintaining an effective anti-money laundering program.

This development underscores the escalating regulatory scrutiny faced by cryptocurrency exchanges worldwide, as authorities aim to establish robust frameworks to ensure compliance with financial regulations. The SEC’s decisive actions aim to uphold regulatory standards and protect investors within the rapidly evolving landscape of digital assets.