The enforcement action underscores the SEC’s findings that Binance actively promoted its services to attract funds from Filipino investors without possessing the necessary licensing from the regulator.

This development adds to the litany of legal challenges facing Binance, including the recent leadership change and a substantial fine imposed by the US government for alleged violations of anti-money laundering regulations.

Former CEO Changpeng Zhao is currently awaiting sentencing on charges related to violating the Bank Secrecy Act.

Binance is also embroiled in legal disputes with the US Securities and Exchange Commission and the Commodity Futures Trading Commission over alleged mishandling of customer assets.

The Philippines’ SEC has advised investors holding assets on the Binance platform to promptly close their positions or transfer them to registered exchanges or wallets within the country to mitigate potential risks.

This latest enforcement action follows the Philippines’ SEC’s decision last month to block Binance’s operations as an investment and trading platform due to its lack of required licensing.

Despite warnings issued since November 2023, Binance continued its activities, prompting the SEC to escalate its measures.

During a meeting on March 12, the SEC formally requested the National Telecommunications Commission to block access to Binance’s website and associated web pages.

Aquino reiterated the urgency of addressing the risks posed to Filipino investors’ funds by allowing continued access to the platform.

Binance’s failure to obtain the necessary license from the SEC contravenes Philippines’ regulations, which mandate companies to secure approvals before soliciting investments and operating securities exchanges.

Moreover, the exchange’s extensive social media promotions targeting Filipino investors have raised concerns about compliance and investor protection.