Infrawatch PH Calls for Suspension of Binance Operations in the Country

Late last week, thinktank Infrawatch PH urged the Bangko Sentral ng Pilipinas (BSP) to launch a probe into the operations of major crypto exchange Binance in the country. Infrawatch PH Convenor Terry Ridon addressed a formal letter to BSP Governor Benjamin Diokno on Wednesday regarding the request. At the moment, Binance still lacks a Virtual Asset Service Provider (VASP) license for its operations.

“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,” explained Ridon. “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.”

The crypto exchange’s continued operations without the proper licensing also give it an unfair competitive advantage. “To date, there are 19 entities that have been given the VASP license and are consequently bound by strict compliance rules, while Binance continues to flout the regulatory requirements of the Philippine government,” Ridon added.

Binance has also been banned or is under investigation in 13 other countries. “Filipinos are exposed to several other financial risks every day, especially with the growing number of VASP users and cryptocurrency traders in the country. Binance exploits the Philippine market without accountability,” said Ridon. Based on Infrawatch PH, there are around there are 3.4 million Filipinos who utilize the platform’s services.

In response, Binance maintained that it is still yet to receive a formal copy of Infrawatch PH’s complaint. The company, however, affirmed that it is open to any discussions. “Binance is continuously engaging with stakeholders globally, including in the Philippines, to further contribute to the web3 and blockchain ecosystem,” the firm elaborated. “We are working and would like to work with various organizations, companies, and community movers to know how to make the best approach, introduce, and create opportunities around web3 technology in the Philippines.”  Binance CEO Changpeng Zhao furthered that the company is currently processing its VASP and electronic money issuer (EMI) licenses from the BSP.

Sources: BusinessMirror, ABS CBN, Manila Standard