Infrawatch PH, a public policy thinktank has urged the Banko Sentral Ng Pilipinas (BSP) to suspend and ban Binance from operating in the Philippines, citing Binance’s continued operations in the country without a Virtual Asset Services Provider (VASP).
According to the BSP, companies looking to exchange digital and virtual goods require a Virtual Asset Services Provider (VASP) license to be able to do so.
Binance is the biggest cryptocurrency exchange in the world, founded by Changpeng Zhao, a developer who had previously created high-frequency trading software. Zhao recently visited the country this month, and expressed interest in working with both banks and the government, and was looking to get both a Virtual Asset Service Providers (VASP) and Electronic Money Issuer (EMI) license.
“Regulation helps adoption, not the other way around,” Zhao said during his visit a week ago.
In the letter sent to the BSP, Infrawatch PH had three demands for the government:
Conduct motu proprio proceedings on the operations of Binance in the Philippines
Suspend any and all operations of Binance and/or Binance affiliates in the country (once the BSP finds that they have been operating here without a VASP license)
Reject any and all future applications of Binance and/or Binance affiliates to register with the BSP for compromising the financial system of the country
The demands would effectively ban Binance from operating in the Philippines.
Binance has already faced calls for increased regulatory scrutiny in other countries. The UK was the first country to effectively ban Binance from operating in their jurisdiction, as Britain’s Financial Conduct Authority announced last year that Binance Markets Limited, the U.K. division of Binance, “is not permitted to undertake any regulated activity in the U.K.”
Italy’s Commissione Nazionale per le Società e la Borsa, the government authority of Italy responsible for regulating the Italian securities market, also banned Binance’s operations in their country last year.