Global Crypto Exchange Under Fire in the Philippines

The recent announcement by the Philippines Securities and Exchange Commission (PSEC) that they will be banning Binance from offering cryptocurrency services has raised questions about the future of crypto gambling in the region.

According to the Filipino crypto-news site BitPinas, the government has given the crypto exchange a "three-month countdown". By then, they must have wrapped up services and cashed out all virtual token accounts based in the Philippines.

 Where Did Binance Go Wrong?

Delivering his keynote address, entitled ‘Empowering Consumers: Understanding the SEC’s Directive on Unregulated Exchanges’ at the recent panel hosted by Coins.ph, PSEC chair Kelvin Lee clarified why Binance came under fire:

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“Based on the Commission’s database, the operator of the platform Binance is not registered as a corporation in the Philippines and operates without the necessary license and/or authority to sell or offer any form of securities.”

As part of developing the Philippines as a leading financial, securities, and gambling jurisdiction, they have worked closely with the Financial Action Task Force (FATF) to ensure compliance with the organisation's asset and anti-money laundering definitions.

According to the PSEC website, the following stringent requirements must be met before a company can offer cryptocurrency services:

1. That the securities being offered are registered with the Philippine Securities and Exchange Commission (SEC). This involves filing an application for registration and providing detailed information about the securities, including the issuance price, the use of proceeds, and the nature of the securities.
2. That the securities must be issued by a corporation or a licensed dealer, both of which should be registered in the Philippines.
3. That the issuer possesses a secondary license to sell or offer securities to the public.

The proposed ban of Binance and its expulsion from the Philippines is based on the company knowingly trading in the country illegally despite not even having registered for a digital asset license, let alone holding one.

 Is Crypto Gambling Legal in the Philippines?

The fact that it is Binance’s flouting of the country's laws that have led to the upcoming ban is excellent news for cryptocurrency casinos, as the government is very much in favour of the digital asset sector – as long as it is compliant.

According to the Philippine Amusement and Gaming Corporation (PAGCOR), gambling at online casinos and taking sports bets with Bitcoin and altcoins is acceptable as long as it is done at a licensed casino and processed by a legal digital asset company. This means Filipino players can still legally enjoy their favourite Crash games, play Plinko, and take advantage of Provably Fair gambling reports.

Apart from having to transfer their crypto holdings to a new exchange, Filipino crypto gambling fans won't find it challenging to continue betting with Bitcoin as the country has seventeen Bangko Sentral ng Pilipinas-registered virtual asset service providers which are licensed and ready to facilitate local crypto casino transactions legally.