The hurdles facing Binance exchange are far from over as the new Chief Executive Officer (CEO) Richard Teng has been slammed with two new regulatory crackdowns outside of the United States. As reported by Reuters, the Philippines’ Securities and Exchange Commission (SEC) has started the process of reviewing the exchange’s permission to operate in the country, drawing on allegations that it is operating illegally.
Per the report, the Filipino regulator has asked Google and Meta platforms to block advertisements to the trading platform. It has also warned those marketing the exchange to residents in the country to desist, as they may be held criminally liable.
Over the past two years, Binance made definite attempts to stay on the good side of market regulators, doggedly fighting to meet regulatory compliance under its founder and former CEO, Changpeng “CZ” Zhao. The tables turned last week when the United States Department of Justice (DOJ) fined the trading platform $4.3 billion to settle its pending probe into its alleged regulatory violations.
With Richard Teng defining the next phase of the firm’s compliance push, this regulatory crackdown from the Philippines is the CEO’s first stress test.
Binance might face more crackdowns
Binance is navigating uncharted territory at this time, as it seeks to find its balance. While not so defined, the exchange has lost significant trading volume as some users moved their funds for fear of an FTX-like bank run.
The interesting twist here is that the exchange may face more crackdowns, as coughing up $4.3 billion might suggest to regulators around the world that it has a deep cash reserve to dish out. Alongside the Filipino crackdown, Richard Teng will also have to deal with the challenges that come with running a regulated business as its collaboration with Gulf Energy Development Pcl to launch a new exchange is set to take off soon.
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