Millions of Users Impacted as Binance Faces Blockade in the Philippines
The Philippines Securities and Exchange Commission (SEC) has received approval to block access to the Binance cryptocurrency exchange, citing security concerns and unregistered services. This decision is expected to have a significant impact on Binance’s user base, particularly in the Philippines where it is dominant. Surprisingly, despite the ban, Binance’s native coin BNB has been experiencing a rise in value, possibly due to overall optimism in the crypto market.
After months of deliberation, the Philippines SEC has finally gained the green light from the National Telecommunications Commission (NTC) to enforce the ban on Binance. This development solidifies the fate of Binance’s local operations in the country, as confirmed by local media reports.
Emilio Aquino, the Chairperson of the Philippines SEC, has strongly criticized Binance, stating that it poses a significant threat to the country’s financial security. Aquino specifically highlighted that Binance has been offering various unregistered banking services, such as crypto savings accounts and leveraged crypto trading, which has raised concerns among regulators.
With the ban on the horizon, Binance is preparing 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 undisclosed, Binance is the preferred exchange among the 9.3 million cryptocurrency owners in the country.
This ban on Binance in the Philippines is a major setback for the exchange, especially considering the increasing mainstream adoption of cryptocurrencies. It adds to the impact of Binance’s recent $4.3 billion settlement with the United States Department of Treasury, which resulted in its exit from the US market and had repercussions in European jurisdictions.
Despite these regulatory challenges, Binance’s native token, BNB, has shown resilience. In the past four weeks, BNB’s value has increased by 52 percent, reaching around $581 during Monday’s early New York trading session.
BNB’s surge can be attributed to 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 highlights the importance of regulatory oversight in safeguarding financial markets and investor interests in the cryptocurrency industry.