BSP Urged to Ban Binance For Illegally Operating in the Philippines

A public policy thinktank in the Philippines has sent a letter to the BSP asking it to suspend Binance for operating illegally in the country.

Photo for the Article - BSP Urged to Ban Binance For Illegally Operating in the Philippines

UPDATE June 16, 2022: Binance has commented about Infrawatch PH’s letter to the BSP to ban them in the country.

Original article follows.

Infrawatch PH, a public policy think tank in the Philippines has sent a letter to the Bangko Sentral ng Pilipinas (BSP) to suspend and ban global cryptocurrency exchange Binance from operating in the country without the necessary licenses to do so.

Binance, as per the BSP website, is not a holder of the Virtual Asset Services Provider (VASP) license, which is given to entities who wish to engage in the transfer or exchange of virtual assets, although it recently expressed its intention to obtain one, announced by Binance CEO Changpeng Zhao himself. For more information on VASPs, please check out this article: How to Get a VASP License in the Philippines for Crypto Exchanges.

Infrawatch PH Asks BSP to Suspend and Ban Binance in the Philippines

Infrawatch PH, in its letter, said it invites the BSP’s “immediate attention to this very pressing matter for your appropriate action, in according with existing laws and regulations in the Philippines.”

Specifically, the thinktank wants the BSP to undertake the following actions:

  1. Study the operations of Binance in the Philippines
  2. Suspend the exchange after notice and hearing
  3. Reject any future application of Binance as VASP after it operates without one.

The entire document can be found below:

On June 8, 2022, Changpeng CZ Zhao, the CEO of Binance, announced their plans to Philippine media to obtain VASP license and e-money (EMI) license in the Philippines. The VASP license authorizes a company to legally convert fiat to pesos and vice versa. EMI license authorizes the holder to operate and disburse electronic money. (Read More: List of Licensed Virtual Currency Exchanges in the Philippines).

Zhao also announced other initiatives, such as as investing in crypto companies and plans to sponsor FIlipino students via a scholarship program.

Amid these reports however, outgoing Finance Secretary Carlos Dominguez mentioned in a press briefing that Binance is not registered in the country but the SEC is tracing it through their system.

This is a developing story.

This article is published on BitPinas: BSP Urged to Ban Binance For Illegally Operating in the Philippines

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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