SEC Chairperson Explains Position on Binance and Unregistered Crypto Entities

SEC Chairperson Explains Position on Binance and Unregistered Crypto Entities

by May 9, 2024

In a recent statement, Securities and Exchange Commission (SEC) Chairperson Emilio B. Aquino addressed the challenges faced by regulators in pursuing unregistered firms, notably mentioning cryptocurrency exchanges such as Binance.

Speaking with BusinessWorld, Chairperson Aquino underscored the regulatory responsibilities amidst growing concerns over fraudulent activities within the crypto sphere.

Chairperson Aquino highlighted the ongoing efforts of the SEC towards establishing comprehensive crypto regulations, slated for release in the latter half of the year. The discussion also revisited the recent move by the National Telecommunications Commission (NTC) to block access to the Binance website, following a formal request from the SEC.

SEC Chairperson Emilio B. Aquino

Emilio B. Aquino

Referencing past experiences, Chairperson Aquino expressed hope for swift responses from tech giants like Apple and Google to regulatory requests, stating,

“We already experienced this with lending apps before. The response is quick. It’s up to them.”

Emphasising investor protection, Chairperson Aquino reiterated the challenges posed by unregistered entities such as Binance operating within the country’s crypto landscape, citing the collapse of FTX as a pertinent example.

However, he reassured that no virtual asset service providers (VASPs) were exposed during the FTX incident, as confirmed by the Bangko Sentral ng Pilipinas.

Despite regulatory actions, Chairperson Aquino acknowledged the persistence of some investors accessing platforms via virtual private networks (VPNs), underscoring the SEC’s commitment to its mandate.

The SEC’s issuance of a public advisory against Binance in November 2023 stirred debate within the local crypto community, particularly regarding the platform’s status and the SEC’s authority to block its website.

In response, crypto-focused lawyer Atty. Rafael Padilla contested the SEC’s move, asserting the necessity of a court order to block Binance’s website. Rafael suggested to Bitpinas potential legal avenues for the Binance community to challenge the regulator’s decision in court.

 

 

Featured image credit: Edited from Freepik