Former Binance CEO Changpeng Zhao (CZ) has claimed that a “local player” was responsible for blocking the global cryptocurrency exchange’s efforts to secure regulatory approval in the Philippines.
CZ Alleges Local Interference
In response to a question on Twitter/X regarding Binance’s licensing status in the country, CZ stated:
“As of the last time I had knowledge on this issue, there [was] a local player blocking.”
Changpeng “CZ” Zhao, Former CEO, Binance
This comment on X reignited discussions about Binance’s regulatory situation in the Philippines, where the Securities and Exchange Commission (SEC) has issued an advisory against the exchange.
- Additionally, the National Telecommunications Commission (NTC) has ordered internet service providers (ISPs) to block access to the Binance website, making it only properly accessible via mobile apps.
Binance Regulatory Challenges in the Philippines
Even before the SEC issued the advisory, Binance has faced challenges in the Philippines.
- In 2022, Infrawatch PH, a public policy think tank, lobbied the SEC and the Bangko Sentral ng Pilipinas (BSP) for a ban on Binance, citing its lack of a Virtual Asset Service Provider (VASP) license.
- The Department of Trade and Industry (DTI) later confirmed that Binance lacked the necessary permits to operate legally, but later argued it is not the right agency for the issue to be addressed.
Binance, or at least its community of users, has maintained a strong presence in the Philippines even before 2020.
- At one point it had a local General Manager who even participated in Senate meeting, but soon exited the exchange by mid-2022.
- The General Manager, in one interview, said the pause in applications for new VASP did not affect them because they are acquiring an entity who already has one.
Initial Industry Reactions
CZ’s remarks drew reactions from key figures in the Philippine crypto industry.
- Colin Goltra, former Binance director for Southeast Asia, responded with a tweet stating, “MAKE BINANCE PHILIPPINES GREAT AGAIN.”
- Miguel Cuneta, a co-founder of Rebittance, which previously held a VASP license, also weighed in, saying, “As someone who was right in the middle of all that… can’t agree more!!!”
Speculations on the “Local Player”
Apart from Infrawatch, speculation arose about which entity the former Binance CEO referred to as the “local player” that blocked Binance from establishing operations in the Philippines.
- Commenters on X suggested that locally licensed crypto exchanges and lobbying efforts played a key role in restricting Binance’s entry into the country. (Readers can check the discussion on X here.)
Binance’s Current Status in the Philippines
Binance remained silent as the issue with the SEC unfolded.
However, it sent an email to its users in the Philippines after reports emerged that the Commission had instructed Apple and Google to remove the Binance app from their respective app stores. In a separate press conference, the Commission’s chairman said they are just doing their job:
“I know there are still some investors who we are not even stopping because they’re going to it via virtual private networks. They still can. But nobody gets to blame us. Maybe others might say that we didn’t do anything to stop these apps.”
Emilio B. Aquino, Chairperson, SEC
In the email to users in April 2023, Binance said the situation is only temporary.
“Please keep in mind that the unfolding situation is dynamic and complex. As we actively navigate this, we remind you the importance of staying informed and vigilant about third-party platforms claiming to provide access to Binance. We cannot endorse any unofficial methods for retrieving funds.”
Binance email, April 2023.
Nearly two years later, the Binance website remains inaccessible in the Philippines, but users can still access the platform through its mobile apps.
This article is published on BitPinas: Binance Was Blocked by a Local Player in the Philippines, Says CZ
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