Binance Faces Regulatory Hurdles in the Philippines: SEC Urges Users to Withdraw Funds Before Potential Ban
Paolo Ong emphasized that the agency had previously announced a three-month grace period for users to withdraw their funds from the exchange
Philippines Securities and Exchange Commission's PhilippFintech Innovation Office Chief, Paolo Ong, stated that the agency is unable to approve new withdrawal methods for Binance following the possibility of its ban. This comes after the Philippines SEC instructed the National Telecommunications Commission (NTC) to block access to certain exchanges due to their lack of licensing.
Philippines SEC clarifies stance over Binance ban
Paolo Ong emphasized that the agency had previously announced a three-month grace period for users to withdraw their funds from the exchange. Additionally, he mentioned that there were further extensions available for users to complete their fund withdrawals before the potential ban takes effect. However, Ong expressed hope that users would not have their funds trapped on the exchange when the ban is enforced. He advised users to transfer their funds to local exchanges or utilize their personal wallets before the grace period expires.
Regarding the situation of users who miss the grace period, Ong stated that there are no alternative withdrawal methods endorsed by the agency after the grace period ends. He clarified that once the ban order is finalized, the agency cannot support new withdrawal methods. Despite the National Telecommunications Commission’s (NTC) order on March 25 for internet service providers (ISPs) to block access to Binance within five days, Ong mentioned that the ban had not been fully implemented, explaining why users could still access the exchange.
Challenges and future outlook for Binance users
Former Binance CEO Changpeng Zhao, speaking at a press conference in Manila, sought to reassure users in the Philippines by stating that the exchange is engaged in discussions with authorities to obtain a license to operate in the country. However, Zhao clarified that the agency has not yet received any formal application for a license from Binance. He emphasized that the exchange has not submitted any official or formal request for licensing status to date.
Ong also highlighted that the Philippines Securities and Exchange Commission (SEC) had issued several warnings regarding the status of Binance before implementing the ban. In 2022, the agency issued a statement cautioning investors against engaging in services offered by the platform. At that time, the regulator emphasized that Binance lacked the necessary authorization to solicit investments or conduct operations in the country due to its unlicensed status.
