Corrupt people blocking Binance from operating legally in PH

[Sanitough]

Just In: CZ Claims a ‘Local Player’ Was Blocking Binance From Securing License in the Philippines

I hate this situation because it’s also blocking traders from accessing a good exchange. But this is the reality in the Philippines, so many corrupt officials taking bribes from certain operators just to prevent a dominant exchange from entering the market.

I was really frustrated when I read this news. I initially thought Binance simply wasn’t interested in getting a license in the Philippines, but it turns out this was the real reason. Greedy business operators and corrupt officials are making things difficult for Binance.

Maybe that’s why they haven’t penalized Binance because if they do, and Binance pays the penalty, they’d have no choice but to allow them to operate.

Here’s the screenshot of CZ’s reply.

[Z-tight]

I hate this situation because it’s also blocking traders from accessing a good exchange.

I do not live in the Philippines, but i am sure there are other 'good' exchanges that people can use over there, and which they are already using. I don't know if we should take cz's word for it, it could probably be that Binance are not just pushing that much to get the license to operate in Philippines. Why would local players be blocking this license?

[Solosanz]

Government have two ways to fight against foreign countries, the first one is total block and the second one is charge higher taxes.

I do not live in the Philippines, but i am sure there are other 'good' exchanges that people can use over there, and which they are already using.

I usually heard they mentioned coins.ph

But, foreign exchanges always better than local version because they have many coins, pairs, lower fees, and high liquidity. If their local exchanges were really good, people wouldn't move to other exchanges.

[examplens]

I hate this situation because it’s also blocking traders from accessing a good exchange. But this is the reality in the Philippines, so many corrupt officials taking bribes from certain operators just to prevent a dominant exchange from entering the market.

I was really frustrated when I read this news. I initially thought Binance simply wasn’t interested in getting a license in the Philippines, but it turns out this was the real reason. Greedy business operators and corrupt officials are making things difficult for Binance.

The solution is probably for Binance to find its corrupt official (above the local guy) and for him to approve their business.
How big is the Philippine market anyway? Do the big world players even have an interest in making an effort around him?

[coupable]

I hate this situation because it’s also blocking traders from accessing a good exchange. But this is the reality in the Philippines, so many corrupt officials taking bribes from certain operators just to prevent a dominant exchange from entering the market.

I was really frustrated when I read this news. I initially thought Binance simply wasn’t interested in getting a license in the Philippines, but it turns out this was the real reason. Greedy business operators and corrupt officials are making things difficult for Binance.

The solution is probably for Binance to find its corrupt official (above the local guy) and for him to approve their business.
How big is the Philippine market anyway? Do the big world players even have an interest in making an effort around him?

CZ's statement is a bit misleading and not entirely convincing. The accusation of corruption and collusion with big players by the Philippine authorities is serious. There may be another explanation for the delay in obtaining licenses or the authorities' refusal to grant Binance a license.
In an article published in June 2024, citing statistics prepared by TripleA, it was mentioned that the Philippines is the sixth country in terms of the number of citizens owning Bitcoin, with 15.76 million citizens, or 13.4% of the total population. I think these are enough numbers to make the Philippines a huge market for trading platforms.

[BitMaxz]

I usually heard they mentioned coins.ph

But, foreign exchanges always better than local version because they have many coins, pairs, lower fees, and high liquidity. If their local exchanges were really good, people wouldn't move to other exchanges.

Coins.ph is not a good exchange; the rates are high, the fees are pretty expensive, plus they ask for withdrawal fees when withdrawing to any local money app and banks.
The bad part is it keeps asking for KYC and actually they have limited coins available.

There's a local exchange in the Philippines, which is PDAX, but the same thing with coins.ph, but they have a lot of coins supported. However, it still not good option to trade since most of the new coins and other altcoins aren't listed there compared to foreign exchanges like Binance.


I think the main reason why they block Binance is two promote these two exchanges since they have much more control over these two than the big exchange like Binance.

[Sanitough]

I hate this situation because it’s also blocking traders from accessing a good exchange. But this is the reality in the Philippines, so many corrupt officials taking bribes from certain operators just to prevent a dominant exchange from entering the market.

I was really frustrated when I read this news. I initially thought Binance simply wasn’t interested in getting a license in the Philippines, but it turns out this was the real reason. Greedy business operators and corrupt officials are making things difficult for Binance.

The solution is probably for Binance to find its corrupt official (above the local guy) and for him to approve their business.
How big is the Philippine market anyway? Do the big world players even have an interest in making an effort around him?

They are always at the top 10 in terms of crypto adoption ranking.

https://bitpinas.com/business/chainalysis-ph-drops/

2022: The Philippines ranked 2nd in the Chainalysis Global Crypto Adoption Index, driven by the popularity of platforms like Axie Infinity, DeFi usage, and strong engagement in crypto trading.
2023: The country dropped to 6th, influenced by the global bear market, FTX’s collapse, and a reduction in crypto value received (from $8 billion in 2022 to under $5 billion in mid-2023).
2024: The Philippines now ranks 8th, reflecting strong participation in centralized services and retail crypto usage. DeFi remains an essential part of the ecosystem, though other emerging markets have gained more momentum.

And its popular local exchange recorded almost $10 million daily volume but that was because traders are still using Binance even if its already ban in the Philippines. So what Binance want here is to be legal and that people will gain protection, so there's no reason the government will not approve it, unless what CZ said is really true.

CZ's statement is a bit misleading and not entirely convincing.

It’s understandable if that’s how you see it since you’re not from the Philippines. But if you were from here, you wouldn’t be surprised by what CZ said, you’d probably just nod in agreement. Corruption is everywhere, especially in the government sector.

[logfiles]

I hate this situation because it’s also blocking traders from accessing a good exchange. But this is the reality in the Philippines, so many corrupt officials taking bribes from certain operators just to prevent a dominant exchange from entering the market.
I was really frustrated when I read this news. I initially thought Binance simply wasn’t interested in getting a license in the Philippines, but it turns out this was the real reason. Greedy business operators and corrupt officials are making things difficult for Binance.

People that give "power" by other people Always tend to turn out corrupt, especially when they are so greedy. I, too, would be so mad about such people if I was in the Philippines, and this also opens the eyes of the Youth on whom to elect next time. Someone who can think about the Citizen's interests as well, instead of just their own stomachs

[hugeblack]

Binance can escalate the matter in the social media and then the government will be forced to start an official investigation if it is true or there is a real desire to enter the Philippine market.
In general, as long as there is corruption, there are other corrupt people who are able to make the decisions change, but frankly, this will reduce the credibility of the market and will be a discount on the safety of citizens.

[Sanitough]

Binance can escalate the matter in the social media and then the government will be forced to start an official investigation if it is true or there is a real desire to enter the Philippine market.
In general, as long as there is corruption, there are other corrupt people who are able to make the decisions change, but frankly, this will reduce the credibility of the market and will be a discount on the safety of citizens.

For sure, Binance has a lot of supporters who will help them make their case heard. Right now, there are still many Binance users in the Philippines, including myself, who aren’t worried about accounts being blocked. That shows the level of trust we have in this exchange, especially since most local exchanges charge high fees and have non-standard spreads.

However, I don’t think that kind of support will be enough to change anything. As I’ve mentioned before, corruption in the Philippines is high. The best solution for Binance might be to find government officials they can "work with" to facilitate their license processing and secure legal status in the country.

[NotATether]

Binance can escalate the matter in the social media and then the government will be forced to start an official investigation if it is true or there is a real desire to enter the Philippine market.

Didn't they just do that, according to the screenshot? But it doesn't look like the Filipino authorities take this seriously.

However, I don’t think that kind of support will be enough to change anything. As I’ve mentioned before, corruption in the Philippines is high. The best solution for Binance might be to find government officials they can "work with" to facilitate their license processing and secure legal status in the country.

I wonder how Binance plans to find people in the Philippines who have connections to financial regulators in that country. Since clearly the official channels aren't working.

[Japinat]

However, I don’t think that kind of support will be enough to change anything. As I’ve mentioned before, corruption in the Philippines is high. The best solution for Binance might be to find government officials they can "work with" to facilitate their license processing and secure legal status in the country.

Corruption is everywhere, so even without concrete evidence, we can understand why CZ might actually be telling the truth.
To give an example of possible corruption in the Philippines, I’ll refer to a recent news story to make sure we’re all aware of what’s happening.

Newly opened P1.2 billion Isabela bridge collapses



So a newly opened bridge with a massive budget just recently collapsed. Speculations are already circulating, suggesting that the bridge might have been substandard, with hints that contractors and government officials were involved in the issue.

No one wants to see this kind of incident, but if there’s any silver lining, it’s that an investigation will take place to determine whether the bridge was indeed substandard. Hopefully, those responsible will be held accountable and face legal consequences.

This is just another example of the massive corruption in the Philippines.

[Russlenat]

I wonder how Binance plans to find people in the Philippines who have connections to financial regulators in that country. Since clearly the official channels aren't working.

I don’t think that’s a problem. If it’s true that corruption is high in that country, then finding someone who can help should be easy when money is involved.

Binance just has to play the dirty game. They were able to pay billions in penalties in the U.S., so throwing around $10 million should be nothing for them. That amount would already be very tempting for the crooks in the government to drop whoever they’re currently protecting.

[Zwei]

Binance can escalate the matter in the social media and then the government will be forced to start an official investigation if it is true or there is a real desire to enter the Philippine market.

Didn't they just do that, according to the screenshot? But it doesn't look like the Filipino authorities take this seriously.

but why should they? they are the ones doing the blocking protecting whoever this "local player" is, and tbh, it's just some billionaire words on twitter. he didn't even drop any names.

from the look of things, they either have to pay their way in or fighting it the legal way. but we all know how that ends in a corrupt legal system.

[Sanitough]

from the look of things, they either have to pay their way in

This one is probably the easiest way.

or fighting it the legal way. but we all know how that ends in a corrupt legal system.

And they can’t do this because they’ve already violated Philippine law by operating without a license. Maybe they’re now trying to comply, but regulators seem to be saying, "No thanks, we’re fine without you."

Philippines orders removal of Binance from Google and Apple app stores

Philippines SEC Issues Warning Against Binance for Unauthorized Operations

The Philippines Securities and Exchange Commission (SEC) has issued a stern warning against cryptocurrency exchange Binance, stating that it has been operating without the necessary approvals or licenses in the country. The regulator’s announcement on November 28, 2023, has raised concerns about Binance’s legality in the Philippines and the potential consequences for those involved in its services.

Unauthorized operations and promotion

The Philippines SEC emphasized that Binance, a prominent global cryptocurrency exchange, is not authorized to sell or offer securities within the country. Under the Philippines’ Securities Regulation Code (SRC), any entity intending to offer securities to the public must register and provide comprehensive information about the securities, including issuance price and their nature.

[examplens]

or fighting it the legal way. but we all know how that ends in a corrupt legal system.

And they can’t do this because they’ve already violated Philippine law by operating without a license. Maybe they’re now trying to comply, but regulators seem to be saying, "No thanks, we’re fine without you."

To me, it sounds more like the government doesn't want to allow them to work in PH. They can always configure the law so that it is almost impossible for a third party to comply with it. The entry of a foreign company into the economic system can significantly disrupt the control of cash flows, and this does not suit the corrupt administration at all.

[Sanitough]

or fighting it the legal way. but we all know how that ends in a corrupt legal system.

And they can’t do this because they’ve already violated Philippine law by operating without a license. Maybe they’re now trying to comply, but regulators seem to be saying, "No thanks, we’re fine without you."

To me, it sounds more like the government doesn't want to allow them to work in PH. They can always configure the law so that it is almost impossible for a third party to comply with it. The entry of a foreign company into the economic system can significantly disrupt the control of cash flows, and this does not suit the corrupt administration at all.

Another issue is the 60/40 rule in the Philippines, which discourages foreign investors since they can only own 40% of a business, making it less attractive for them to invest.

Because of this setup, big local players can easily manipulate the competition, taking advantage of the system. And with corruption deeply rooted in the country, it’s no surprise that the same powerful groups continue to dominate the market.

https://www.tripleiconsulting.com/what-60-40-ownership-rule-philippines/

The 60-40 ownership rule in the Philippines governs foreign investments and ownership of businesses within the country. It stipulates that foreign investors can hold a maximum of 40% ownership in certain businesses, while Filipino citizens or entities must own the remaining 60%.

[Russlenat]

To me, it sounds more like the government doesn't want to allow them to work in PH. They can always configure the law so that it is almost impossible for a third party to comply with it. The entry of a foreign company into the economic system can significantly disrupt the control of cash flows, and this does not suit the corrupt administration at all.

It’s not difficult if they really want to allow it. They even let POGOs operate which is gambling, so why not a crypto exchange that isn’t even risky for people?

Having a major exchange legally operating in the Philippines would be a good thing, especially since many Filipinos have fallen victim to crypto scams. At least it would help educate people that the real way to earn in crypto is through trading or holding, not by investing in Ponzi schemes.

[NotATether]

To me, it sounds more like the government doesn't want to allow them to work in PH. They can always configure the law so that it is almost impossible for a third party to comply with it. The entry of a foreign company into the economic system can significantly disrupt the control of cash flows, and this does not suit the corrupt administration at all.

It’s not difficult if they really want to allow it. They even let POGOs operate which is gambling, so why not a crypto exchange that isn’t even risky for people?

Having a major exchange legally operating in the Philippines would be a good thing, especially since many Filipinos have fallen victim to crypto scams. At least it would help educate people that the real way to earn in crypto is through trading or holding, not by investing in Ponzi schemes.

It is clear that people in almost every country want to use Binance, so why even bother blocking them at all?

It is always counter-intuitive - many people will try to circumvent the geoblock by using VPNs and maybe even by borrowing someone else's documents for verification.

I guess that if people did not watch Youtube advertisements from their favorite creators so much then they would not be exposed to all of those crypto scams that you guys talk about.

[joniboini]

Having a major exchange legally operating in the Philippines would be a good thing, especially since many Filipinos have fallen victim to crypto scams. At least it would help educate people that the real way to earn in crypto is through trading or holding, not by investing in Ponzi schemes.

I don't see how it will help people who don't want to learn about scams in the first place. I'm sure Binance Academy or other learning sources are accessible without registering a new account and making trades on their exchanges anyway. If the goal is to reduce scams I don't think this is the most efficient way to do it.

I agree that blocking their IPs is not effective at all since people can easily use DNS encryption or VPN to bypass that (unless the government plans to block every single VPN service or IP, too). CMIIW.