The Infrawatch PH think tank has sent письмо to the Philippines’ Department of Trade and Industry, urging an investigation into the cryptocurrency exchange Binance over illegal marketing campaigns.
According to the analysts, Binance promotional campaigns are appearing on various social networks targeted at Filipino consumers. Terry Ridon, head of Infrawatch PH, said that the exchange is effectively performing the functions of a virtual asset service provider (VASP) in the country without a license and is flouting local rules.
A Binance spokesperson said the exchange takes compliance seriously, having introduced mandatory KYC procedures for its users. The next step will be obtaining licenses as a virtual asset service provider (VASP) and as an electronic money issuer in the Philippines.
Infrawatch PH has not been averse to challenging Binance’s activities in the country. Last month, analysts urged the Philippine central bank to initiate legal proceedings against the platform, calling it a ‘danger to society’ in the wake of declines in the prices of major cryptocurrencies.
As reported in June, Binance CEO Changpeng Zhao said the exchange planned to file an application for licenses in the Philippines. The head of the company expects the process to be completed within a few months.
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