Philippine cryptocurrency users are currently facing a dilemma as the country’s Securities and Exchange Commission (SEC) has blocked access to Binance, preventing users from withdrawing their funds.
In a recent interview, Paolo Ong, the officer in charge of the SEC’s PhiliFintech Innovation Office, stated that the regulator cannot endorse any methods for users to retrieve their funds following Binance’s ban by internet service providers (ISPs) in the Philippines.
Ong explained that the SEC had previously issued a three-month warning to Binance users, urging them to withdraw their funds from the exchange. The intention was for investors to transfer their funds to local exchanges or personal wallets within the specified timeframe.
However, Ong acknowledged that some users may not have been able to comply with the withdrawal requirement, leaving them without any suggested means of reclaiming their money. He stated, “Unfortunately, we can’t endorse any method on how to take out their money now that the blocking order is out.”
On March 25, the National Telecommunications Commission (NTC) directed ISPs in the Philippines to block access to Binance immediately, giving them a five-day deadline to enforce the ban.
Despite the ban, the Binance website remains accessible in the country at the time of writing, suggesting that the full implementation of the ban is still underway.
Ong clarified that Binance had not submitted any applications to the SEC for formal registration in the Philippines, contrary to earlier statements made by former Binance CEO Changpeng Zhao. Zhao had expressed the exchange’s intention to obtain licenses in the country during a press briefing in Manila on June 8, 2022. However, as per the SEC, no official application from Binance has been received for registration in the Philippines.
The SEC has consistently cautioned the public about Binance’s operations, stating that the exchange lacks the authority or license to solicit investments in the country. Despite these warnings, some users find themselves unable to withdraw their funds due to Binance facing restrictions in the Philippines.
Binance’s regulatory troubles extend beyond the Philippines, as the exchange has faced increasing scrutiny worldwide. Last year, the Commodity Futures Trading Commission (CFTC) filed charges against Binance for allegedly operating an illegal digital asset derivatives exchange and evading federal laws.
Similarly, the US Securities and Exchange Commission charged Binance Holdings LTD and ex-CEO Changpeng Zhao (CZ) for allegedly operating unregistered exchanges and other violations. Binance and CZ pleaded guilty to various federal charges, including anti-money laundering violations and unlicensed money transmission, on November 21, 2023. CZ subsequently resigned as the CEO of Binance as part of the agreement with the Department of Justice.
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