BUSINESS
Advocates Philippines
Binance Unauthorized To Offer Securities In PH
Photo credit: Binance
The Securities and Exchange Commission (SEC) issues a public advisory cautioning against engaging with the online cryptocurrency exchange, BINANCE. The Commission clarifies that BINANCE is not authorized to sell or offer securities to the public in the Philippines.
Reports indicate that BINANCE has actively employed promotional campaigns on various social media platforms to attract Filipinos for investment and trading activities. The platform, available on its website, Google Playstore, and Apple App Store, claims to operate facilities for trading financial instruments, offering various investment products.
Despite operators claiming registration as brokers/dealers overseas, in the Philippines, the SEC underscores the need for compliance with the Securities Regulation Code. Notably, securities must be registered with the SEC, issued by a registered corporation or dealer in the Philippines, and the issuer must possess a secondary license to sell securities.
Upon investigation, the SEC finds that BINANCE is not registered as a corporation in the Philippines, operating without the necessary license and authority to sell securities as defined under the Securities Regulation Code.
The public is strongly advised to exercise caution before investing in unregistered online platforms. The SEC emphasizes adherence to its Advisory against Dealing with Non-Registered Foreign Entities, Organizations, and Corporations.
Furthermore, individuals promoting BINANCE within the Philippines may face criminal liability under Section 28 of the Securities Regulation Code. Penalties include a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty-One (21) years, or both, as per Section 73 of the SRC (SEC vs. Oudine Santos G.R. No. 195542, 19 March 2014).
Reports indicate that BINANCE has actively employed promotional campaigns on various social media platforms to attract Filipinos for investment and trading activities. The platform, available on its website, Google Playstore, and Apple App Store, claims to operate facilities for trading financial instruments, offering various investment products.
Despite operators claiming registration as brokers/dealers overseas, in the Philippines, the SEC underscores the need for compliance with the Securities Regulation Code. Notably, securities must be registered with the SEC, issued by a registered corporation or dealer in the Philippines, and the issuer must possess a secondary license to sell securities.
Upon investigation, the SEC finds that BINANCE is not registered as a corporation in the Philippines, operating without the necessary license and authority to sell securities as defined under the Securities Regulation Code.
The public is strongly advised to exercise caution before investing in unregistered online platforms. The SEC emphasizes adherence to its Advisory against Dealing with Non-Registered Foreign Entities, Organizations, and Corporations.
Furthermore, individuals promoting BINANCE within the Philippines may face criminal liability under Section 28 of the Securities Regulation Code. Penalties include a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty-One (21) years, or both, as per Section 73 of the SRC (SEC vs. Oudine Santos G.R. No. 195542, 19 March 2014).
Nov 30, 2023
