The Chair of the Philippines Securities and Exchange Commission (PSEC), Kelvin Lee, stated in a panel discussion at Coins.ph on December 13, 2023, that the commission is in the process of taking measures to block and ban Binance within the next three months. This clarification was provided during a panel organized by BitPinas, a crypto news publication based in the Philippines, aiming to address public confusion following the PSEC’s advisory warning about Binance’s unregistered exchange status.
“It is supposed to be three months from our issuance date. Three months from November 29. Depending on how feedback is, we can actually extend that, but currently we should feel lucky with the three months,” said Commissioner Kelvin Lee.
The advisory released by the commission on November 29, 2023, explicitly stated that the exchange lacked authorization to sell or offer securities in the country. This was due to its absence of registration and failure to apply for a VASP (Virtual Asset Service Provider) license from the commission.
“Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities,” the PSEC stated.
A VASP license is necessary for exchanges to facilitate crypto-to-fiat transfers, trades, and the management/custody of virtual assets, aligning with the current definitions outlined by the Financial Action Task Force (FATF), a global watchdog for money laundering and terrorist financing.As of October 27, 2023, the Philippines finds itself on the FATF’s developing watchlist, with 17 VASPs currently operating in the country.Chairman Lee faced criticism post the commission’s advisory on Binance and discussions regarding a potential ban. During the panel, Lee confirmed Google and Meta’s compliance with the SEC’s request to block Binance-related ads in the country. Although details are limited, it’s noteworthy that Google recently adjusted its advertising policies for cryptocurrencies, coinciding with the anticipated approval of a Bitcoin ETF.
“I kept getting asked: why ban Binance when it is cheaper and has more options—of course, they are cheaper because they never bothered to register in the Philippines and bothered to comply. Unlike the registered entities, there is of course compliance costs (that the VASPs have to shoulder),” said Lee.
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