• Thu. May 30th, 2024

Philippines Places Restrictions on Binance, Changpeng Zhao Awaits Formal Sentencing

Maria Bartiromo

ByMaria Bartiromo

Apr 27, 2024
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The Binance app has been banned in the Philippines due to a major regulatory crackdown. This move was made amid escalating worries over the platform’s adherence to regional laws and heightened efforts by international prosecutors to get a lengthier term for Changpeng Zhao, popularly known as “CZ,” the ex-CEO of Binance.

The Philippines’ Securities and Exchange Commission (SEC) has been warning the public about utilizing Binance’s services since 2023. The SEC’s primary concerns were the exchange’s legal standing and compliance with legal and regulatory requirements—such as appropriate licensing and anti-money laundering measures.

The Philippines’ regulatory authorities have been closely monitoring the cryptocurrency market to protect investors and preserve market integrity. Binance received numerous warnings from the Philippines SEC regarding its activities in the country.

Statement from the Philippines SEC stated that Binance violated numerous important regulatory obligations, such as Know-Your-Customer (KYC) and anti-money laundering (AML) procedures, and did not possess the required authorization to conduct lawful business in the Philippines. 

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Changpeng Zhao Prosecutors Proposes Heavier Sentence, Accuse Him of Disdain

In a related development, Changpeng Zhao, the CEO of Binance, is being pushed by the prosecution for a heavier sentence. Allegations of market manipulation, securities crimes, and lackadaisical regulatory norm compliance have presented CZ with numerous legal issues across the globe.

The prosecution has maintained that CZ’s conduct has endangered investors and compromised the integrity of the world’s financial markets. The demand for an extended sentence is a component of a larger initiative to make prominent people in the Bitcoin sector answerable for their deeds.

Prosecutors argue that CZ’s leadership of Binance shows disdain for moral and legal principles despite regulatory alerts and continuing inquiries. The prosecutors also added that longer sentences would make a powerful statement to the Bitcoin community about the repercussions of regulatory evasion and noncompliance.

Analyzing the development, AtoZ Markets platform wrote that given Binance’s substantial market position in the local cryptocurrency industry, this move will likely cause some disruptions. Beyond its effects on consumers, the prohibition also represents a change in the Philippine government’s stance on cryptocurrency legislation.

Philippines SEC Chairman Express Worries Over Continued Binance Operations 

Exchanges operating in the Philippines and other countries taking a more aggressive position on cryptocurrency regulation will have to manoeuvre through a more complicated and demanding regulatory landscape.

The Philippines Security and Exchange Commission Chairman (SEC) chairman Emilio Aquino has expressed worries about the future security risks that accessing Binance apps and websites poses to Filipino investors. Aquino stated that restricting access to the Binance app on Apple and Google app stores is essential to prevent the further spread of illegal activities in the country’s financial sector.

He said it’s a way of protecting the public from the negative impact of Binance operations on the country’s economy. The Philippine’s latest move has been described as one of the country’s efforts to compel regulatory compliance in the country’s financial sector. Meanwhile, the National Telecommunications Commission (NTC), Philippines, has restricted access to Binance’s apps and websites.

Philippines SEC Reveals It’s Been Deliberating  Binance Case Since 2023

While cautioning the Filipino public against using Binance, SEC said they have been considering halting Binance operations in the country since November 2023. SEC has also accused Binance of advertising its business on the Philippine’s social media space amid lacking regulatory rights.

Local reports confirmed this claim and stated that Binance has been actively advertising and inviting potential investors from the Philippines without regulatory approval. However, the Philippines SEC has warned Filipino investors with some investments in Binance to quickly close it down or move their cryptocurrency holdings to other approved platforms.

This is happening at a time when Changpeng Zhao, the company’s ex-c CEO, is being tried in the United States under the Bank Secrecy Act and will probably get a 36-month prison sentence, which will be formally declared on April 30.

Maria Bartiromo

Maria Bartiromo

Maria Bartiromo is a renowned news writer and journalist, celebrated for her insightful reporting and authoritative voice. With a career spanning years, she has established herself as a trusted source of accurate and comprehensive news analysis, keeping readers informed on vital global developments.

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