The Securities and Exchange Commission (SEC) of the Philippines finds itself in a tricky situation after blocking access to cryptocurrency exchange platform Binance. Despite prior warnings and an extended waiting period for investors to withdraw their funds, the regulatory authority finds itself unable to endorse methods to recover blocked funds. This decision raises concerns about the fate of users who have failed to withdraw their funds within the allotted time.
SEC statements on the current situation
The head of the SEC's PhiliFintech Office of Innovation, Paolo Ong, said the regulator was unable to recommend ways to recover blocked funds after Binance was blocked by Internet Service Providers (ISPs) in the country. Despite giving investors three months' notice and extending the period before the ban is enforced, the SEC finds itself unable to provide advice to users on how to recover their funds.
Measures taken by the SEC and the NTC
The Philippines' National Telecommunications Commission (NTC) has ordered the country's Internet Service Providers (ISPs) to immediately block access to Binance. Local ISPs were given five days to carry out the order. Despite this, at the time of writing, the Binance website was still accessible in the country, raising questions about the effectiveness of the measure taken.
Binance's status in the Philippines and the SEC's reaction
Although Binance's former CEO Changpeng Zhao stated in June 2022 that the platform was seeking licenses in the country, the SEC had received no formal application for registration from the exchange. The regulator also stressed thatit had repeatedly warned the public of the risks of investing in Binance and that the exchange did not have the authorization or license to solicit investments in the country.
