Phillippines Bans Binance. Now What?
The Phillippines has initiated the block of Binance in the country.
The ban will take in effect within three months, and the Philippines Securities and Exchange Commission (SEC) has reported a request towards Google and Meta to block any Binance advertising within the country.
This comes after the Philippines Securities and Exchange Commission (SEC) previously warned citizens about Binance's unauthorised operations.
Binance, currently under global scrutiny, lacks necessary licenses in the Philippines, which places sixth in the Global Crypto Adoption Index this year.
The advisory cautions against unregistered entities such as Binance, and emphasises on potential criminal liabilities for promoting Binance.
In addition, those who act as salesmen, brokers, dealers or agents, representatives, promoters, recruiters, influencers, endorsers, and enablers of the BINANCE platform in selling or convincing people to invest in this platform within the Philippines, even through online means, maybe held criminally liable under Section 28 of the SRC and be penalized with a maximum fine of Five Million Pesos (P 5,000,000.00) or imprisonment of Twenty One (21) years or both pursuant to Section 73 of the SRC.
Binance has been given three months by the SEC "to give Filipino investors who have holdings in Binance to close their positions and take out their investments."
Shifting regulatory sentiments are not the only thing that plague the beleaguered cryptocurrency exchange.
Binance previously announced a halt in BUSD support by December 15, citing regulatory pressures on issuer Paxos.
Aligning with Binance's earlier plan to phase out BUSD support by Feb. 2024, users are urged to shift to FDUSD, with a fee-free conversion option.
Despite this move, Paxos assures continued BUSD support until February 2024.
FDUSD, issued by FD121 Limited, a subsidiary of Hong Kong's First Digital Limited, surfaced in June 2023.
The stablecoin is pegged to the U.S. dollar and backed by reserves held by its custodian, First Digital Trust Limited, audited by Peckshield.
Incidentally, Binance's preference for FDUSD over established stablecoins raises questions.
First Digital Trust Limited, a Hong Kong-registered trust company, mandates segregated reserves for FDUSD, ensuring no mingling with other assets.
Reserves, held in cash or highly liquid assets, claim to secure the 1:1 FDUSD backing.
Independent auditors attest to the "attestation of reserve" report, confirming the circulating FDUSD's equivalent value in custody.
The New York Department of Financial Services directed Paxos to cease BUSD issuance.
This comes after Binance faces a $4.3 billion settlement with the US Department of Treasury, accused of anti-money laundering and sanctions law breaches.
Zhao had pled guilty, agreeing to a $50 million fine, resigning from his CEO position.
With sentencing in February 2024, Binance confronts worldwide legal challenges, amplifying regulatory pressures.
BUSD, originating in 2019 through Binance and Paxos, faces a transition period due to such circumstances.
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