The leadership of the Philippine Securities and Exchange Commission urges all traders and investors not to work with the Binance cryptocurrency exchange. The Commission announced this in letter consulting firm Infrawatch PH.
What the Binance Risk White Paper Says
In the letter, the country’s exchange regulator points out that the Binance cryptocurrency exchange does not have any authority to provide financial services. Since Binance does not have the appropriate permission, traders and investors are at great risk if they work with the exchange. This is the first time that the financial regulator of the Philippines has openly called for no dealings with the Binance exchange.
Binance has problems not only in the Philippines
Earlier, the Central Bank of the Netherlands fined Binance Holding $3 million for providing crypto-currency services. The fine was issued because Binance did not have permission to conduct trading transactions in the Netherlands.
In July, MEP A. Lalouque submitted a request to the French financial regulator to explain the situation with registration in the country of Binance. The regulator has not been able to clearly argue its position on the request.
The American division of Binance US also has problems. It is trying to avoid fines from the US Securities and Exchange Commission. The exchange has already delisted the AMP token, as the SEC stated that it refers to securities and not digital assets.
Will Philippines traders and investors heed the call of the financial regulator?
Since the exchange is not authorized to conduct transactions in the country, every investor and trader risks their own funds by interacting with Binance. Perhaps some users will heed the recommendations of the regulator and refuse to cooperate with the platform. But for sure there will be those who will continue to work with the exchange.
The South Asian market is known for the fact that users of this region are extremely active in using cryptocurrencies and investing in projects. Therefore, calls to be careful are not perceived properly by many.
Author: Vadim Gruzdev, analyst Freedman Сlub Crypto News
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