• 28 May, 2024
News

Binance Under Fire: App Removal in Philippines, Canadian Lawsuit

Cryptocurrency exchange giant Binance is facing fresh legal challenges in both the Philippines and Canada. The Philippines Securities and Exchange Commission (SEC) has requested app stores remove Binance’s applications, citing a lack of licensing and potential harm to Filipino investors.

In a press release dated April 23, the Philippines SEC announced it had requested Google and Apple to remove Binance’s apps from the Google Play Store and Apple App Store, respectively. The SEC alleged Binance’s operations violate the Securities Regulation Code by offering unregistered securities and operating as an unlicensed broker. 

The SEC urged Filipino investors to withdraw their holdings from Binance and transfer them to licensed cryptocurrency service providers. The move follows an earlier request to block Binance’s website within the Philippines. 

Meanwhile, in Canada, a class-action lawsuit was filed against Binance in Ontario’s Superior Court of Justice on April 19. The plaintiffs alleged Binance violated securities laws by selling crypto derivative products to retail investors without proper registration. The lawsuit seeks compensation for damages and the reversal of unlawful derivatives trades.

This legal action comes after Binance announced plans to cease operations in Ontario in 2021 following a warning from the Ontario Securities Commission (OSC). The lawsuit alleged that Binance did not adhere to the announced cessation and continued soliciting trades, prompting the OSC to seek a cease trade order in early 2022. The OSC’s investigation into Binance remains ongoing.

The Philippines SEC’s request for app removal and the Canadian class-action lawsuit could significantly impact Binance’s operations in these regions. If app stores comply with the request, Filipino users will lose easy access to the platform. Similarly, the lawsuit in Canada, if successful, could result in financial penalties for Binance and potentially set a precedent for future legal actions by Canadian investors.

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