DTI to Not Embargo Crypto Exchange Binance Due to Lack of Legal Basis

Binance, CZ-backed world’s largest cryptocurrency exchange, has recently dodged a ban that would prohibit the platform from operating in the Philippines.

Earlier in July, Infrawatch PH, a public Filipino policy think-tank led by lawyer Terry Ridon, issued a letter to the Philippines' Department of Trade and Industry (DTI), indicating that Binance illegally posted unregistered promotions across social media platforms without proper licensing.

Did you know?

Want to get smarter & wealthier with crypto?

Subscribe - We publish new crypto explainer videos every week!

How to Avoid Crypto Taxes? (Legal Ways Explained)

SUBSCRIBE

ON YOUTUBE

Ridon additionally mentioned that Binance has been carrying out activities as an unregistered entity and should have received licensing before setting foot in the country. He added:

“We have information that other virtual currency platforms which are registered in the Philippines essentially undertake the same. They undertake DTI permitting requirements for sales promotion.”

However, in an interesting turn of events, the DTI shut down the lobbying group’s proposal due to a lack of legal basis, noting that the Banko Sentral ng Pilipinas (NG) hasn’t imposed any clear regulations. The department responded to Infrawatch PH’s letter:

“Cryptocurrency and other forms of virtual assets are not consumer products. The DTI has no jurisdiction to act on applications for sales and promotion permits to promote virtual assets per se in the absence of clear legislation on the matter.”

The news arrives a month after Binance CEO Changpeng Zhao (CZ) announced that the crypto exchange would be seeking to receive virtual assets service provider (VASP) and e-money issuer (EMI) licenses in the Philippines. CZ noted that the firm will continue working with a number of banking institutions to score both licenses.

In fact, Binance has successfully registered its subsidiary Moon Tech Spain as a VASP in Spain, following its recent arrival in Italy and France.

Aside from the licenses, earlier in June, Binance enrolled TikTok star Khaby Lame as its brand ambassador to grow the exchange’s ecosystem, debunk some of the myths surrounding the crypto environment, and roll out a series of non-fungible token (NFT) collections.