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Binance is back in the spotlight after drawing the attention of regulators – this time from the Philippine Securities and Exchange Commission – who warned against investing in global exchanges.

The warning is contained in a letter sent by Infrawatch PH to the SEC, a public policy research body that seeks to blacklist cryptocurrency exchanges as “unregistered” entities.

Infrawatch PH asked Philippine regulators to immediately investigate and ban Binance from doing business in the Philippines.

The think tank also previously asked the Department of Trade and Industry (DTI) to investigate the operations of cryptocurrency exchanges.

Binance on Philippine Securities and Exchange Commission’s Concern

In a 12-page letter sent to the SEC by Infrawatch PH convenor Terry I. Ridon, the group outlines specific steps it wants the agency to take against exchanges.

The letter states:

“As such, it does not have the proper authority and/or license to solicit investment, as only registered entities can apply for and obtain the necessary licenses to solicit investment.”

According to Infrawatch, a recent public warning from former Philippine Finance Secretary Carlos Dominguez further supports Ritton’s claims.

Image: Bangko Sentral Ng Pilipinas

No central bank or SEC records

The announcement made it clear that the digital currency exchange does not have any records with the U.S. Securities and Exchange Commission or the Bangko Sentral ng Pilipinas (BSP), the central bank of the Philippines.

BSP previously issued the “Virtual Currency Exchange Guidelines” based on Document No. 944 of 2017, reiterating that venture capitalists do not have “legal currency status” and are not issued or guaranteed by any government.

For his part, SEC Director Oliver O. Leonardo also backed the Infrawatch convenor’s claims. Leonardo said in a letter that, based on their initial assessment, “Binance is not a registered company or partnership.”

He said the company has been marketing and promoting financial products and tools in the country despite its lack of authorization, no local offices and operations through third parties.

Infrawatch revealed that Binance has more than 1.4 million users and said it proposed to expand its footprint in the bustling Southeast Asian country.

Crypto exchange in hot water

Meanwhile, Binance’s U.S. subsidiary said it would stop trading Flexa’s AMP token due to the SEC’s classification of the asset as a security.

Following news last week that the SEC was investigating Coinbase for allegedly allowing U.S. residents to trade digital assets that were supposed to be registered as securities, the SEC took action.

The Dutch central bank revealed two weeks ago that Binance was penalized in the Netherlands for operating without proper documentation.

In April, ABN Amro (DNB), which oversees the registration of crypto service providers, fined Binance S$3.4 million.

A class action lawsuit has been launched against Binance.US, the U.S. arm of the exchange, for its marketing and sale of defunct Terra LUNA and UST tokens.

Crypto total market cap at $1.06 trillion on the daily chart | Source: TradingView.com

Featured image from Binance, chart from TradingView.com



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