Co-founder and former CEO of Binance, Changpeng Zhao (popularly known as CZ), has alleged that a Philippine-based local cryptocurrency operator is behind Binance’s inability to operate in the country.
CZ, who did not mention the specific rival, made the accusation on Wednesday while responding to a Filipino crypto trader, @Kenneth_TCG, who asked: “Will you be able to help Binance fix the license to operate here in the Philippines?”
Binance, the world’s largest cryptocurrency exchange by trading volume, was banned from operating in the Philippines in 2024 due to registration and regulatory violations.
However, CZ’s recent allegation adds a new dimension to the ban, although he did not provide further details.
“Coin PH is Behind Binance’s Travails”
In another twist, a user identified only as Jane alleged that CoinPH is making it difficult for Binance to return to the Philippines, claiming the crypto exchange seeks to monopolize the market.
“@coinsph is blocking any attempt. They want to have a crypto monopoly in the Philippines,” Jane alleged.
CoinPH describes itself as a leading crypto exchange in the Philippines, licensed by Bangko Sentral ng Pilipinas (BSP), with more than 100 digital assets listed on its platform.
One might ask: If Binance complied with regulatory requirements and obtained an operating license in the country, would CoinPH still be able to block its access to the Philippine market?
Background
Binance’s troubles in the Philippines began in 2023 after the Philippine Securities and Exchange Commission (SEC) declared that the exchange had failed to comply with local laws regarding digital asset holding and trading.
By November 2023, the SEC issued a stern warning that if Binance failed to obtain an operating license, it would have no choice but to block users’ access to the platform.
It also warned Filipino citizens against using the exchange, setting February 2024 as the deadline for Binance to take necessary actions.
While the SEC continued to issue statements, Binance remained silent, leaving its Filipino users in limbo.
In March 2024, the Philippine SEC revealed that it had received approval from the National Telecommunications Commission (NTC) to block access to Binance.
SEC Chairperson Emilio Aquino stated in a letter that Binance posed “a threat to the security of the funds of investing Filipinos.”
On April 24, 2024, the Philippine SEC wrote to Google and Apple requesting that Binance be removed from their app stores due to violations of local laws.
“Blocking Binance from the Google and Apple app stores will help prevent the further proliferation of its illegal activities in the country and protect the investing public from its detrimental effects on our economy,” Aquino stated.
Since then, Binance has remained blocked in the country, though crypto enthusiasts continue to advocate for its reinstatement while others have moved on with local exchanges operating in the country.
The exchange has faced similar challenges in Nigeria, the United States, and other countries around the world for regulatory violations.
In the U.S., the largest crypto exchange was ordered to pay a $4.3 billion fine for alleged money laundering violations and its founder CZ sentenced.
There are over 9 million crypto owners in the Philippines, according to data from the consumer intelligence platform GWI. However, the number of Filipino users on Binance remains unknown.