Binance: Seeking Licensing in Response to Country's Letter

Binance responded to the letter by saying that they take compliance seriously and will seek licensing in the country. 

Think tank Infrawatch PH has urged the Philippines' Department of Trade and Industry (DTI) to investigate crypto exchange Binance for promotions without permits.

The letter claimed that the crypto exchange has been targeting Filipino consumers with unregistered promotions that are being casually posted on social media platforms. Terry Ridon, the Convenor for Infrawatch PH, said that Binance disregards Philippine regulations, as the exchange performs virtual asset service provider (VASP) functions in the country without a license.

In response to the letter, a Binance spokesperson told Cointelegraph that the exchange takes compliance seriously and is working with regulators, law enforcement, and industry leaders to further security and sustainability within the industry. The company explained that:

"In the Philippines, Binance is looking to secure the VASP and EMI licenses. We are continuously engaging in discussions with regulators and stakeholders within the country. Our goal is to contribute to the Philippines' increasingly vibrant Web3 and blockchain ecosystem."

The Binance spokesperson also stressed that the exchange is complying with all applicable laws and regulations. In addition, the exchange has implemented mandatory know-your-customer (KYC) requirements for its users. Furthermore, the spokesperson mentioned that they have been investing in compliance efforts continuously.

At a press briefing in Manila, Binance CEO Changpeng Zhao announced that the exchange was seeking to obtain critical licenses in the Philippines. These include the VASP license, which allows it to legally facilitate crypto exchanges, and the e-money issuer (EMI) license, which enables it to issue digital money.

Infrawatch PH has been critical of Binance's operations in the Philippines for a while. In June, the think tank contacted the central bank and urged it to take action against Binance, calling it a "threat to the public" after citing the crypto crash.