An executive working in the region claims that traders headquartered in the Philippines now have to cope with higher trading costs and fewer crypto tokens to pick from as a result of Binance being kicked out of the nation.
A three-month countdown to a Binance ban was declared by the Philippines Securities and Exchange Commission (SEC) on December 14, 2023. At the time, Kelvin Lee of the SEC claimed that Binance had "never bothered to register in the Philippines" and adhere to rules.
On March 25, the National Telecommunication Commission (NTC) of the nation mandated that regional ISPs disable the exchange. The SEC issued orders for Apple and Google to remove the Binance app from their stores on April 23.
More costs and a decrease in tradeable tokens
According to Ethan Rose, CEO of Pouch, a business that lets Filipinos pay using Bitcoin, Binance's prohibition shields Filipino traders from dishonest individuals. Changpeng Zhao, the former CEO of Binance, "pled guilty to serious financial crimes," according to Rose. She clarified:
"Binance being banned shields all Filipinos from negative influences."
According to Rose, local exchanges benefit from the Binance restriction. The executive thinks that the local economy is greatly benefited by this.
Rose continued, "This increase in local business will also help Philippine crypto businesses raise global investment funding, which is another win for the Philippine economy."
Rose acknowledged that there are "trade-offs," even if the ban would have advantages, such as greater trading costs for Filipino traders after it takes effect. Rose continued, saying:
"The trade-off is that there will be fewer tokens available for trading and higher fees with local platforms for Filipinos who engage in cryptocurrency trading."
The executive, meanwhile, doesn't think this is a significant drawback. "We don't think this is a significant drawback that needs to be addressed."
No "big crackdown" on cryptocurrencies
The CEO of the cryptocurrency instruction company Global Miranda Miner Group, Arlone Polo Abello, stated in the interim:
"This SEC action reflects the United States SEC's approach of requiring exchanges to register, as with Binance and others, but it is not a major clampdown."
Abello thinks that although the move might have a “chilling effect” on cryptocurrency traders who use unregistered exchanges, more people are beginning to realize that exchanges need to register in order to be able to do business in the nation.
Furthermore, Abello clarified that Binance does not reply to inquiries for data and feedback from traders within the nation during their group talks with regional traders.
"We found that Binance has been silent and uncommunicative about its situation in the Philippines during our focus group discussions with cryptocurrency traders," he stated.
Emphasizing how crucial compliance is
As per the statement made by Jay Ricky Villarante, CEO of Moneybees, an over-the-counter (OTC) trading company, the move by the SEC to prohibit Binance further highlights the significance of regulatory compliance and monitoring in the cryptocurrency sector.
To guarantee legitimacy and long-term viability, Villarante clarified that market players—including exchanges, investors, and regulators—must correctly negotiate the regulatory environment.
Furthermore, the prohibition might also help the region's regulations become more clear. According to Villarante:
"By establishing a precedent and clear boundaries for acceptable conduct of the various participants in the crypto market ecosystem, the SEC's action may contribute to greater regulatory clarity within the Philippines crypto market."
The executive added that this might boost the confidence of market players and promote ethical industrial innovation.
The executive thinks there are both positive and bad ramifications overall. But according to Villarante, it is unquestionably a "significant development" for cryptocurrency in the nation.
April 2024, Cryptoniteuae