- December 15, 2023
- Posted by: [email protected]
- Category:
The Philippine Securities and Exchange Commission (SEC) has provided clarity on the previous advisory, stating that unregistered platforms, including Binance, will face a ban within three months. On December 13, the head of the financial regulator, Kelvin Lee, addressed concerns at a panel discussion on educating customers about unregistered exchanges. Lee revealed that institutions lacking registration have a three-month window from the advisory issuance date, which was November 29, before the ban takes effect. He noted that the original recommendation was for a mere one month but extended it to three months to allow feedback, considering the upcoming Christmas season.
Responding to inquiries about Binance’s status in the country, Lee emphasized that the extended time frame benefits all parties involved and prevents disruption for local investors. The initial recommendation on his desk proposed a one-month ban, with some suggesting a one-week transition phase. However, the Commissioner deemed it more practical to offer a three-month grace period to facilitate regulatory compliance without unduly affecting Filipino investors during the festive season.
To safeguard investors, the financial regulator aligns with global counterparts by seeking fully compliant measures from all virtual asset service providers in the country. The SEC issued warnings to other entities, like OctaFx and MiTtrade, with a plan to observe their registration status before taking action. Commissioner Lee refuted claims by these firms that they don’t operate in the country, asserting that they target Filipino investors online, mirroring the logic employed by the United States Commodity Futures Trading Commission.
Addressing calls to exempt Binance due to its relative affordability, Lee explained that the exchange’s lower costs stem from its non-registration status, as compliance entails additional financial obligations. He emphasized the Commission’s responsibility to remind citizens to avoid unregistered platforms and opt for virtual asset platforms with regulatory approval in case of unforeseen issues.
Authorities concluded by advising users to invest through the 17 registered platforms in the country, hinting at future regulations by IG concerning digital assets. Unlike public consultations in other jurisdictions, the SEC plans to engage a small group of experts to deliberate on proposed rules and provide feedback to the authorities. This approach aims to ensure a thorough and informed decision-making process.
