The National Telecommunications Commission (NTC) of the Philippines has taken action to disrupt access to certain crypto trading platforms operating without the necessary licenses, in response to a call from the Securities and Exchange Commission (SEC). This demonstrates the government’s commitment to safeguarding investors and combatting illicit financial activities within the country.
While various regulatory measures are being employed against unlicensed entities, it is noteworthy that Binance, a prominent cryptocurrency exchange, continues to operate in the Philippines, raising questions about the effectiveness of current regulations.
With a focus on reinforcing control over the crypto market, the NTC instructed internet service providers on February 21 to block websites and apps associated with MiTrade and OctaFX for engaging in investment activities without proper licensing. This enforcement action led major internet service providers in the country to restrict access to these websites, indicating the effectiveness of the NTC’s directives. The SEC chairman, Emilio B. Aquino, praised the NTC’s actions, emphasizing the role of such measures in preventing illegal investment schemes and protecting Filipino investors.
The SEC has consistently warned the public about the risks of dealing with unauthorized platforms, including Binance, which was identified as operating without clearance in a November 28 advisory. The commission underscored the severe legal consequences for those involved in facilitating or trading on unlicensed exchanges, including hefty fines and imprisonment. Despite these warnings and potential penalties, Binance has continued to operate in the Philippines, highlighting the challenges of regulatory enforcement in the crypto industry.
The SEC’s focus on investor protection is evident in its efforts to highlight the risks associated with unregulated crypto trading and advise against using unaccredited platforms. The warnings issued by the SEC also emphasize the criminal liabilities for individuals engaging with such platforms, as outlined in Section 28 of the Securities Regulation Code.
Despite regulatory warnings, Binance’s ongoing presence in the Philippines suggests a nuanced approach to enforcement. The SEC initially provided a three-month compliance window following its advisory, with the option for extension based on feedback and regulatory assessments. This grace period aimed to minimize disruption during the holiday season, taking into account the circumstances of Filipino investors.
