Philippine authorities receive recommendation to ban Binance

The local think tank, Infrawatch PH, pointed out that the platform has been operating illegally in the country for several years

08.07.2022 - 15:15

341

2 min

What’s new? Infrawatch PH, a Philippines public policy think tank, has called on the Department of Trade and Industry (DTI) to investigate cryptocurrency exchange Binance. The think tank’s experts argued their appeal by the fact that the platform does not have local registration and its promotional offerings lack relevant permissions, the Bitpinas news agency reports.

Information on the Bitpinas website

Infrawatch PH’s position. The think tank’s convenor Terry Ridon pointed out that Binance, without being registered in the Philippines, offers services to locals through a platform that is not regulated by the authorities. He noted that Filipino users often encounter the exchange’s promotional offers posted on websites and social platforms, which is an illegal sales promotion. Ridon also expressed fears that locals could lose their funds. In addition, Binance’s weak anti-money laundering mechanisms could encourage illegal activities, the expert stressed.

Based on these arguments, Ridon called on the Philippine authorities to issue a cease and desist order against promotional advertisements towards Binance and conduct the necessary checks.

Representatives of the exchange, in turn, said that they are open for discussions with the local regulatory authorities.

In mid-June, some 2 000 retail investors in the Terra project, who lost their investments as a result of the collapse of the ecosystem, filed a lawsuit against the US arm of cryptocurrency exchange Binance. The platform was accused of using misleading advertising and selling tokens as unregistered securities.

Author: