An infrastructure-oriented thinktank has urged the Bangko Sentral ng Pilipinas to clamp down on Binance, an online platform for virtual asset trading, for operating in the Philippines without any license from the government.
Former congressman and Infrawatch PH convenor Terry Ridon made the statement as his group filed a six-page letter-request to BSP Governor Benjamin Diokno calling for the conduct of motu proprio proceedings on Binance operations in the country.
“No less than Finance Secretary Carlos Dominguez III confirms the lack of registration and authorization of Binance, last Thursday, June 9, 2022, when he reminded the public about the dangers of dealing with non-registered entities. He said that the public cannot get legal protection from the BSP if they deal with non-registered entities. As such, it is urgent for the BSP to immediately inquire on Binance activities in the Philippines and order an immediate suspension of its operations,” Ridon said in a statement.
Ridon said Binance has been offering its services in the Philippines for several years already, allowing Filipinos to buy and sell cryptocurrencies and performing the functions of a Virtual Asset Service Provider (VASP) through an unregulated platform.
“However, under BSP Circular No. 1108, all VASPs shall secure a Certificate of Authority in order to operate as a Money Service Business. VASPs are likewise allowed to only engage with other entities which are themselves “duly authorized and licensed by the appropriate regulatory authorities. Binance has none of these yet continues to operate in the Philippines.”
Ridon said no less than Binance CEO Changpeng Zhao admits that the company has yet to secure licenses from the BSP, but at the same time proudly announces its plan to reinforce its existing presence in the Philippines.
“Binance utterly disregards BSP Circular No. 1108, which has been in effect for more than a year, as well as other existing laws and regulations. This disrespect of the law was highlighted when Sec. Dominguez himself categorically informed the public that Binance is not registered with both the BSP and the Securities and Exchange Commission (“SEC”).”
He also said “the highly anomalous and irregular operations of Binance put in danger millions of cryptocurrency traders and billions worth of virtual asset transactions in the country processed by Binance.”
He added the continued disregard of the licensing rules and regulations by Binance spoils the BSP’s mandate “to provide an environment that encourages financial innovation while safeguarding the integrity and stability of the financial system” and undermines the government’s risk-based approach to virtual asset transactions and service providers.”
