In a significant development following months of deliberation, the Philippines Securities and Exchange Commission (SEC) has gained approval to enforce a ban on access to the Binance cryptocurrency exchange. Reports from local media confirm that the SEC received the green light from the National Telecommunications Commission (NTC), solidifying the fate of Binance’s local operations.
Crackdown on Security Threats
Emilio Aquino, the current Chairperson of the Philippines SEC, has strongly criticized Binance, labeling it a major threat to the country’s financial security. Aquino pointed out that Binance has been providing various unregistered banking services, including crypto savings accounts and leveraged crypto trading, raising concerns among regulators.
User Base Under Threat
With the ban looming, Binance is bracing for a potential loss of over 7 million users from its global user base of more than 170 million accounts. While the exact number of Filipino users is not disclosed, Binance is the preferred exchange among the 9.3 million cryptocurrency owners in the country.
Tackling the Setbacks
The ban on Binance in the Philippines is a significant setback for the exchange, especially as cryptocurrencies are gaining mainstream adoption. This adds to the impact of Binance’s recent $4.3 billion settlement with the United States Department of Treasury, which led to its exit from the US market and reverberated across European jurisdictions.
Despite regulatory challenges, Binance’s native token, BNB, has shown resilience. Over the past four weeks, BNB’s value surged by 52 percent, reaching around $581 during Monday’s early New York trading session.
Fueling BNB’s Rise to the Top
BNB’s surge is fueled by the expanding web3 ecosystem of Binance, supported by its wide range of services and offerings. With a fully diluted valuation of approximately $89 billion, BNB remains a favored large-cap altcoin in the evolving digital finance landscape.
The approval of the ban by the Philippines SEC shows us the importance of regulatory oversight in safeguarding financial markets and investor interests in the crypto markets.
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