The Philippines Securities and Exchange Commission (SEC) chief, Kelvin Lee, has confirmed a three-month timeframe for implementing a ban on Binance following its advisory issuance for operating without a license.
Local news source BitPinas reported on Dec. 13 that Lee addressed widespread confusion regarding the Binance ban, which was initiated after the exchange received a regulatory advisory on Nov. 28 for unlicensed operations. Lee stated that the ban would be effective three months from the advisory date, which was Nov. 29.
Lee noted the possibility of extending the deadline based on feedback, but emphasized the current three-month period. He explained that the initial proposal ranged from one week to one month, but the decision for a longer duration factored in the holiday season to ease the impact on Filipino investors.
Apart from Binance, the Philippines SEC is also targeting other exchanges like OctaFX and MiTrade, which have also been advised for unregistered operations. These platforms face similar bans after their three-month notice period.
The SEC is monitoring a substantial list of unregistered exchanges, adopting a “wait-and-see” strategy to observe if these exchanges comply with registration requirements following the action against Binance.
Lee faced criticism for the decision, especially as Binance is considered a more affordable option compared to registered exchanges. He responded by highlighting the compliance costs that registered entities bear, which unregistered exchanges like Binance avoid. Lee’s advice to local investors is to engage with the 17 registered virtual asset service providers in the country that offer fiat-to-crypto services.
He concluded by emphasizing the importance of registration and consumer protection: “At the end of the day, it’s about registration. At the end of the day, it’s about consumer protection. Work with the registered entities.”