Binance Faces Legal Trouble: Unregistered in Philippines, Warns SEC

• Binance Faces Legal Challenges in the Philippines
• The Need for Compliance with Local Financial Regulations
• US CFTC Warning: Binance is Only the Start
• Uncertain Future for Binance in the Philippines
• Cristiano Ronaldo Faces Legal Action for Binance Promotion

Binance Faces Legal Challenges in the Philippines

The Philippines Securities and Exchange Commission (SEC) has stated in a formal declaration that Binance, a prominent crypto exchange, is allegedly operating without a license in the country. The report points out that the company has been running marketing campaigns on social platforms to draw in new users.

The Need for Compliance with Local Financial Regulations

The Securities Regulation Code of the Philippines insists that any securities being offered must be registered with the local SEC. The party issuing these securities must also be registered within the country. Furthermore, a secondary license is needed by the issuer to sell securities to the general public.

US CFTC Warning: Binance is Only the Start

The Philippines SEC has urged the public to be wary when investing through unregistered online platforms. According to their declaration, Binance could be subjected to potential legal charges. If found guilty, the platform could be fined up to Five Million$2.35 1.09% Pesos ($92,282.03), face imprisonment up to Twenty-One years, or even both.

Uncertain Future for Binance in the Philippines

In the midst of ongoing challenges for the exchange, the announcement from the Philippines SEC adds more complexity. Recently, Binance CEO Changpeng Zhao (CZ) admitted to charges of non-compliance with anti-money laundering regulations by US authorities. As a result, the company has agreed to pay a settlement of $4.3 billion, and CZ has stepped down from his role as CEO.

There has been no official statement regarding Binance's immediate plans. The exchange could potentially apply for a license to operate lawfully, or it could decide to withdraw entirely from the Philippine market. However, this recent attention from the SEC could further complicate the exchange's situation.

Cristiano Ronaldo Faces Legal Action for Binance Promotion

In an additional twist, football icon Cristiano Ronaldo is facing a lawsuit for promoting the exchange. The plaintiffs claim that Ronaldo played a part in the promotion of unregistered securities. Ronaldo has a multi-year agreement with Binance to promote his own line of Non-Fungible Tokens (NFTS).

Edited by Jonathan Stoker