In a recent development, the Philippine Securities and Exchange Commission (SEC) has shed light on the fate of unregistered platforms, including cryptocurrency giant Binance, following their earlier advisory. The SEC’s head, Kelvin Lee, revealed crucial details during a panel discussion on educating consumers about unregistered exchanges held on December 13.
Contrary to initial concerns about an imminent ban, Lee clarified that unregistered institutions, including Binance, have a three-month grace period before facing potential prohibition. Lee emphasized, “It is supposed to be three months from our issuance date. Three months from November 29. Depending on how feedback is, we can extend that, but currently, we should feel lucky with the three months. I’ll be blunt, the original recommendation on my desk was one month.”
When pressed to elaborate on Binance’s status in the country, especially after the platform admitted to operating without a license last month, Lee assured that the three-month timeframe benefits all parties involved. This approach aims to avoid unsettling local investors while granting platforms the necessary time to seek regulatory approval.
Lee revealed the deliberations behind the scenes, stating, “The original recommendation on my desk was one month, and some even proposed a transition phase of just one week. However, considering the upcoming Christmas season, we decided it would be more prudent not to create unnecessary difficulties for Filipino investors.”
The extension to three months provides a breathing space for platforms to comply with regulatory requirements and assures investors of a smoother transition. The SEC’s decision reflects a balance between ensuring compliance and safeguarding the interests of both the investing public and cryptocurrency platforms. As the countdown begins, all eyes are on how these platforms will navigate the regulatory landscape in the Philippines before the three-month deadline looms.