The Philippines SEC head explained that Binance and other unregistered exchanges given advisories have three months prior to their prohibition from operating in the nation.
In a December 13 forum, Kevin Lee, the head of the Philippine Securities and Exchange Commission (SEC), explained that a ban on Binance would be implemented three months following the issuance of an advisory.
SEC Chair Explains Looming Ban Targeting Illegal Operations
A recent report revealed that, according to Lee, there is widespread misperception on the internet regarding the ban. The November 28 ban came after regulators warned Binance because of running without a permit.
When requested to explain the issue, Lee said this ban was ‘supposed to be three months from the date of issuance,’ which he claimed was provided on November 29. He also claimed that based on the state of feedback, they can extend the ban. However, the three months are enough.
Lee claimed the original suggestion was one month, including a ‘one-week changeover period.’ However, the Christmas holiday evoked the need for additional time. Besides, it aimed to eliminate problems for Filipino investors in that period.
Lee claimed that besides Binance, MiTrade and OctaFX were also issued warnings for unregistered activities. They are also likely to encounter bans after three months.
Philippines Deploys Wait-and-See Strategy Following Action Against Binance
The local Securities and Exchange Commission claimed it has a substantial list of unregistered exchanges that will finally arise. Nevertheless, it is also implementing a ‘wait-and-see’ strategy regarding the exchanges’ willingness to register following the action taken against Binance.
The report revealed that Lee was slammed due to the Binance veto since it is ‘inexpensive’ compared to other registered exchanges. He claimed that failure to register in the nation or comply with regulations made the exchanges cheaper. Compliance costs exist, but they are different from the registered entities.
Lee urged local investors to ‘deal with registered entities,’ claiming that the nation has 17 registered virtual asset service providers. He claimed that, ultimately, it is all about registration as well as consumer protection.
An inquiry to Binance for comment concerning the state of affairs and any plan of action in the nation is yet to realize response.
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