Binance ‘a risk to the public,’ says The Philippines-based think tank

ambcrypto.com:

A local think tank, Infrawatch PH, encouraged the Philippine Department of Trade and Industry (DTI) to investigate the cryptocurrency exchange, Binance’s unauthorized promotion techniques via a letter. According to the letter, the exchange allegedly used unregistered promotion means that were casually shared on social media sites to target Filipino consumers. Additionally, Infrawatch PH convenor Terry Ridon asserted that Binance violated regulations in the Philippines by operating as a virtual asset service provider (VASP) without a license.

Binance has faced numerous regulatory issues that only seem to get worse. Furthermore, unrestricted investor access to digital currencies that financial officials are unaware of and the absence of conventional investors pose threats.

Last month, Binance CEO Changpeng Zhao, stated that the exchange aims to secure virtual asset service provider (VASP) and electronic money issuer (EMI) licenses despite not being registered in the Philippines. 

To which Terry Ridon, convenor of Infrawatch, wrote in the letter,“Their unregistered activity allows Filipinos to buy and sell cryptocurrencies and with wanton disregard of Philippine regulations. They perform the functions of a Virtual Asset Service Provider (VASP) through an unregulated platform.”  

However, a Binance spokeswoman responded to the allegations stated in the letter. She said that the organization takes compliance issues seriously. Additionally, the organization also plans to collaborate with government officials, law enforcement, and business leaders to improve the industry’s security and sustainability.

The Binance official also stated that the exchange strictly enforces compliance with all applicable laws and regulations.