Cryptocurrency exchange Binance has been operating in the Philippines without the necessary approval or license, according to the local securities regulator.
The Philippines Securities and Exchange Commission (SEC) issued a warning against Binance on Nov. 28, informing the public that the exchange is not authorized to sell or offer securities in the country.
The announcement emphasized that an exchange like Binance must apply for registration and provide detailed information about offered securities before selling them to the public. Such detailed information includes the issuance price, the nature of securities and other data.
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The Philippines' Securities Regulation Code (SRC) also requires securities issuers to be registered in the country before being offered for investment. The issuer should also acquire a secondary license to sell or offer securities to the public, the statement notes, adding:
"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 as defined under Section 3.1 of the SRC."
In addition to operating without the necessary license, the SEC argued that Binance had been illicitly promoting its services in the country. The regulator warned entities involved in promoting or trading on Binance may be held criminally liable under Section 28 of the SRC.
This is a criminal offense that carries the penalty of a fine of up to 5 million Philippine pesos ($90,300), or imprisonment of 21 years, or both, under Section 73 of the SRC, the statement notes.
Binance did not immediately respond to Cointelegraph's request for comment.
This is a developing story, and further information will be added as it becomes available.
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