Philippines SEC Orders Removal of Binance App from Google and Apple Stores due to Security Concerns and Regulatory Issues
The Philippines Securities and Exchange Commission (SEC) has taken a firm stance against the popular cryptocurrency exchange Binance, ordering Google and Apple to remove the Binance app from their app stores in the country. This move comes as a result of significant security risks to Filipino investors and concerns about potential negative impacts on the national economy.
According to a report by Cointelegraph, the SEC has identified Binance as a threat to the security of funds for investing Filipinos and has concluded that the continued access to the app poses risks. The commission has stated that selling or marketing unregistered securities to locals and operating as an unregistered broker violates the country’s securities legislation.
The SEC’s action to remove the Binance app from digital app marketplaces follows a previous restriction on access to Binance websites by the SEC and the National Telecommunications Commission (NTC) on March 25. The SEC has been actively warning the public against using Binance for investments since November 2023, as the cryptocurrency exchange has yet to obtain a license to solicit public investments or operate a securities trading exchange.
In response to the ban, a spokesperson for the SEC emphasized that consumers have been given a three-month period, with an extension, to withdraw their funds from the exchange. After this period, the SEC stated that it cannot endorse any means for reclaiming monies.
Binance has faced regulatory challenges worldwide, including a recent class-action lawsuit in Canada for violating local securities laws. Despite these challenges, Binance announced plans to return to India after paying a $2 million fine for noncompliance with local regulations. Additionally, the exchange has reportedly obtained a crypto license in Dubai, known as the Virtual Asset Service Provider (VASP), after co-founder Changpeng Zhao relinquished his voting rights in the exchange’s local organization.
The SEC’s crackdown on Binance in the Philippines is part of a broader effort to regulate the cryptocurrency industry and protect investors from potential risks. As the global regulatory landscape for cryptocurrencies continues to evolve, exchanges like Binance will need to navigate complex legal requirements to operate in different jurisdictions.
