Philippines based think tank says Binance is risk to the public
A local think-tank, Infrawatch PH, has encouraged the Philippine Department of Trade & Industry (DTI) to investigate cryptocurrency exchange Binance’s unauthorized promotion techniques via letter.
According to the letter, the exchange allegedly used unregistered promotions that were casually shared on social media to target Filipino consumers. Additionally, PH regulator Infrawatch Terry Redon confirmed that Binance violated regulations in the Philippines by operating as a Virtual Asset Service Provider (VASP) without a license.
Binance has faced several regulatory issues that seem to get worse. Moreover, investors have unrestricted access to digital currencies that financial officials are not aware of and the absence of traditional investors poses threats.
Last month, Binance CEO Changpeng Zhao stated that the exchange aims to secure licenses for Virtual Asset Service Provider (VASP) and electronic money issuance (EMI) even though it is not registered in the Phillippines.
However, a Binance spokeswoman responded to the allegations in the letter. She said the organization takes compliance issues very seriously. In addition, the organization also plans to collaborate with government officials, law enforcement, and business leaders to improve industry security and sustainability.
The Binance official also stated that the exchange enforces strict compliance with all applicable laws and regulations. Moreover, the exchange has made know your customer (KYC) policies a requirement for its users. The official went on to say that investments in compliance programs have not stopped.
Infrawatch PH already objected to the exchange’s activity in the country. The research group contacted the Central Bank of the Philippines in June and asked the organization to take legal action against Binance. Infrawatch described Binance as a “risk to the public” and cited the collapse of the cryptocurrency as justification.