Philippines-based think tank Infrawatch PH petition Authorities will investigate the operation of Binance in Asian countries.
In a letter on July 25, think tanks claimed that Binance was operating in the country without a license. The cryptocurrency exchange did not have a known office in Manila and continued to use third-party companies to hire national citizens.
“Binance has been doing business domestically as a virtual asset exchange platform without complying with the basic requirements for registration with the Commission and without securing the licenses needed to operate and provide financial instruments.”
Other violations
The 12-page letter details other breaches that the crypto company violated in its domestic business.
According to Syncthanks, Binance products such as domestic spot trading, margin trading, P2P trading, cryptocurrency loans and futures contracts are securities. This means that the exchange must register with the Filipino SEC before continuing to operate.
Infrawatch PH claimed that Binance is engaged in illegal sales promotion by seducing Filipinos to join the platform using cryptocurrency gifts, monetary rewards, vacation trips and more.
Infrawatch PH also said Changpeng Zhao-led exchanges have been banned in several countries, condemning the collapse of Terra / LUNA.
Infrawatch wants Binance ban
Think tanks want the SEC to impose a fine on Binance and prevent the company or its affiliates from registering with the committee.
Think tank convener Terry Redon said:
“The SEC has provided sufficient service to its citizens by banning malicious online lending services. It must do the same for unregistered and unregulated cryptocurrency exchanges in the country.”
Binance responds
Binance spokesman Said The company worked with regulatory agencies to license as a domestic virtual asset service provider and e-commerce issuer.
A spokeswoman added that Binance aims to “contribute to the increasingly vibrant Web3 and blockchain ecosystem in the Philippines.”
Meanwhile, the Philippine Ministry of Trade and Industry (DTI) has previously rejected a think-tank call for a ban due to lack of regulatory clarity.
Recently, the central bank of the Netherlands has fined Binance € 3.35 million for operating without a license.
