The Infrawatch PH Crusade Against Binance
The think tank Infrawatch PH is pulling no punches in its efforts to ban cryptocurrency exchange Binance from operating within the Philippines. After filing a formal complaint with the Securities and Exchange Commission (SEC), they’re demanding a thorough investigation into Binance’s actions, claiming its operations are running a bit too free and wild.
Binance’s Alleged Regulatory Evasion
Terry Ridon, the convenor of Infrawatch PH, is adamant that Binance is conducting its business without proper oversight. He pointed out the absence of a physical office in Manila, instead alleging that the exchange relies on third-party companies for technical support using Filipino employees. Ridon also referenced comments from former finance secretary Carlos Dominguez, who confirmed a lack of records linking Binance to the SEC or Bangko Sentral ng Pilipinas (BSP).
What’s on the Menu? Binance’s Offerings Under Fire
Infrawatch PH is claiming that Binance’s array of financial products—including spot trading, margin trading, and even crypto loans—resembles securities, which, according to SEC regulations, require proper registration. Ridon emphasizes that just like certain unscrupulous online lending services have faced the SEC’s wrath, it’s time Binance gets its comeuppance too.
Products That Raise Eyebrows
- Spot Trading
- Margin Trading
- Futures Contracts
- Options
- Crypto Loans
- Peer-to-Peer Trading
Binance’s Response: A Dialog with Regulators
Meanwhile, Binance has responded to the escalating situation by assuring its commitment to collaborate with local regulators. A spokesperson declared that the company is in talks to obtain virtual asset service provider and electronic money issuer licenses, indicating a willingness to operate under the law. They noted the implementation of mandatory Know Your Customer (KYC) procedures last year, a move aimed at boosting compliance and fostering goodwill.
Government Stance: A “Wait and See” Approach
In a twist of irony, the Department of Trade and Industry (DTI) recently dismissed a proposed ban on Binance, citing regulatory ambiguity in their statements. It seems the DTI believes that the regulatory framework is a bit like a cryptographic puzzle—still needing some pieces to fit together before they can make a definitive ruling. This hasn’t deterred Infrawatch PH, which initiated its crusade with the DTI concerning Binance’s promotional practices.
The State of Crypto in the Philippines
As this drama unfolds, the backdrop is one of growing cryptocurrency engagement inside the Philippines. A spike in weekly Bitcoin trading on common platforms indicates that crypto enthusiasm is on the rise, spurred partly by companies like PayMaya entering the fray with innovative trading features. The digital landscape is evolving, and the question remains: will Binance be a crucial player or a fleeing rogue?
