The recent ban of cryptocurrency exchange Binance by the Philippines Securities and Exchange Commission (SEC) has left many Filipino users worried that their assets may be lost forever.

In a recent interview, attorney Paolo Ong discussed the SEC’s ban on Binance and how this affects its users.

Binance is not “specifically targeted”

Paolo Ong, the official in charge of the SEC’s PhiliFintech Innovation Office, joined One News PH to explain the SEC’s ban on Binance and the regulator’s stance on non-compliant crypto exchanges.

As Bitcoinist reported, the SEC has banned Binance’s website and online services in the Philippines. The Philippine regulator requested assistance from the National Telecommunications Commission (NTC) to “protect Filipino investors.”

Due to recent events surrounding the cryptocurrency exchange and its former CEO Changpeng Zhao, the SEC had to delve into the circumstances of the incident. The lawyer explained that the regulator “deemed it necessary to ban the platform.”

Still, SEC officials confirmed that the ban was not an attempt to specifically target the world’s largest exchanges. Instead, “it is simply a recurring enforcement action against these platforms.”

According to Ong, there are about 14 platforms that will be banned in the Philippines by 2023, as follows:

“We are not targeting Binance in particular, this is part of our duty to protect Filipino investors.”

Recently, regulators also warned cryptocurrency trading platform eToro for not being registered as a company in the Philippines and lacking the required licenses to operate in the country.

Regarding eToro’s case, the SEC official said it was “the same situation as Binance. They are not registered and are operating in the Philippines.”

Philippine regulators are initiating a notification period and attempting to inform the public about the impending fate of the country’s trading platforms.

Can Binance Users in the Philippines Access Their Crypto?

The lawyer explained that the “grace period” for eToro users begins with the SEC’s notification process. Investors must choose whether to transfer their funds to a registered and licensed exchange in the country or to a personal wallet.

Regarding the issue with Binance users, since they did not withdraw their funds before the exchange was blocked by ISPs in the Philippines, now find their holdings inaccessible.

Ong believes that cryptocurrency exchange users have plenty of time to withdraw their funds:

“We put the notice out in November last year. We gave a three-month deadline. We actually extended the time for people to withdraw their funds or investments from the platform.”

As a result, SEC officials confirmed that the regulator “does not approve of any method” that would allow investors to “withdraw their funds now that the ban is in place.”

According to the lawyer, cryptocurrency trading in the Philippines will be around $80 billion in 2023. He stressed that due to the huge numbers, the SEC is taking steps to protect Filipino investors by formulating cryptocurrency rules.

Nonetheless, these regulations will take time, as Ong explained:

One approach the SEC has taken to respond to these innovations is to establish an Office of Innovation to provide guidance on the risks and opportunities of various technologies used in financial services.

At the time of the interview, the U.S. Securities and Exchange Commission (SEC) had not received any formal application from Binance or eToro to obtain a license. According to the lawyer, the two companies have not taken the initiative to "do the right thing", that is, comply with the country's regulations.#菲律宾  #SEC禁令